Rebound in Hong Kong and China Stocks in April, but Overall MPF Declines: Average Loss of HK$572 per Person

May 6, 2024
Reading Time: 8 minutes

【May 6, 2024】 – In April 2024, the “GUM Comprehensive MPF Index” fell by 0.2% to 230.5 points, while the “GUM MPF Equity Fund Index” rose by 0.6% to 304.8 points. The “GUM MPF Mixed Assets Fund Index” declined by 1.3% to 233.5 points, and the “GUM MPF Fixed Income Fund Index” dropped by 0.1% compared to the previous month, reaching 125.8 points. In April 2024, the average loss per member in the MPF was HKD 572, with a total gain of HK$ 5,449 for the year.

Michael Chan, Managing Director of GUM, pointed out that “The recent rebound in the Hong Kong stock market was primarily driven by five favourable measures introduced by Mainland China, which optimized the Shanghai-Hong Kong Stock Connect mechanism and attracted Mainland investors to invest in Hong Kong. Conversely, global markets experienced a pullback in April, mainly due to the Iran and Israel conflicts. Expectations for interest rate cuts by the Federal Reserve have decreased once again, with current projections suggesting only one rate cut in 2024. It is anticipated that market volatility will increase as the United States enters the earnings season in May, and investors should exercise caution and closely monitor market dynamics.”

Martin Wan, Investment and Strategic Analyst of GUM, further stated, “Despite adjustments in US and Japanese equity funds, the overall outlook remains positive. The strong rebound in the Chinese and Hong Kong markets has turned losses into profits for Chinese and Hong Kong stock funds. Additionally, due to market expectations that the Federal Reserve will not begin cutting interest rates until September, conservative funds can still benefit from a high-interest rate environment, making them a stable choice for conservative investors.”

Table 1: Overall performance of MPF and average return in April

IndexValueApril Return (%)2024 YTD Return (%)
GUM MPF Composite Index230.5-0.2%2.2%
GUMMPF Equity Fund Index304.80.6%3.8%
GUM MPF Mixed Asset Fund Index233.5-1.3%1.5%
GUM MPF Fixed Income Fund Index125.8-0.1%0.2%
Average MPF Gain/Loss Per Member Note 1 (HK$)-572+5,449

Analysis of Equity Fund Performance

In April, there was a notable rebound in Chinese and Hong Kong equity funds. The “Hong Kong Equity Fund (Index Tracking)” and “Hong Kong Equity Fund” performed the best, with gains of 7.1% and 6.4% respectively. However, for the year-to-date, they turned losses into profits with increases of 3.2% and 2.9% respectively. On the other hand, the “US Equity Fund” and “Other Equity Fund” experienced adjustments, with declines of 4.1% and 4.0% respectively. Although some stock funds underwent adjustments in April, overall stock funds recorded positive returns for the year-to-date.

Table 2: Ranking of Equity Fund Performance According to April 2024 Return

RankingEquity Sub-category Fund IndexApril Return (%)2024 YTD Return (%)
1Hong Kong Equity Fund(Index Tracking)7.1%3.2%
2Hong Kong Equity Fund6.4%2.9%
3Greater China Equity Fund4.2%4.0%
4Asian Equity Fund0.6%4.3%
5European Equity Fund-2.4%3.2%
6Japanese Equity Fund-2.7%9.2%
7Global Equity Fund-3.2%4.1%
8Other Equity Fund-4.0%3.5%
9United States Equity Fund-4.1%5.4%

Analysis of Mixed Assets fund performance

In April, mixed assets funds experienced declines, primarily influenced by the bond market. The “Target Date Fund” and “Mixed Asset Fund- (>80-100% Equity)” had relatively minor declines of 0.1% and 0.3% respectively. However, funds with a higher proportion of bonds and a higher proportion of global stocks, such as the “DIS Core Accumulation Fund” and the “DIS Age 65 Plus Fund,” performed worse with declines of 2.7% and 2.2% respectively.

For the year-to-date, except for the “Mixed Asset Fund- (>20-40% Equity)” fund, “Other Mixed Assets Fund,” and the “DIS Age 65 Plus Fund,” all other funds still recorded positive returns despite the declines in April.

Table 3: Ranking of Mixed Assets Fund Performance According to April 2024 Return

RankingMixed Assets Sub-category Fund IndexApril Return (%)2024 YTD Return (%)
1Target-Date Fund-0.1%3.0%
2Mixed Asset Fund- (>80-100% Equity)-0.3%3.3%
3Dynamic Allocation Fund-0.4%0.6%
4Mixed Asset Fund – (>60-80% Equity)-0.8%1.8%
5Mixed Asset Fund – (>40-60% Equity)-1.3%0.1%
6Other Mixed Asset Fund-1.6%-1.3%
7Mixed Asset Fund – (>20-40% Equity)-1.8%-1.5%
8DIS Age 65 Plus Fund-2.2%-1.2%
9DIS Core Accumulation Fund-2.7%1.8%

Analysis of Fixed Income Fund Performance

According to current market predictions, the Federal Reserve is expected to begin cutting interest rates in September, and there is a high chance that they will only cut rates once. This has put pressure on bond funds, with the “Global Bond Fund” being the worst performer in April, declining by 2.5%. On the other hand, the “MPF Conservative Fund” and “Guaranteed Fund” have shown relatively stable performance, with increases of 0.3% and 0.2% respectively. The “MPF Conservative Fund” has benefited from the high-interest rate environment, achieving growth of 0.3% in April and 1.3% for the year-to-date, making it the best performer among similar funds.

Table 4: Ranking of Fixed Income Fund Performance According To April 2024 Return

RankingFixed Income Sub-category Fund IndexApril Return (%)2024 YTD Return (%)
1MPF Conservative Fund0.3%1.3%
2RMB & HKD Money Market Fund0.2%-0.1%
3HKD Money Market Fund0.2%1.0%
4Guaranteed Fund0.0%0.1%
5RMB Bond Fund-0.1%-0.2%
6Hong Kong Dollar Bond Fund-0.8%-1.3%
7Asian Bond Fund-1.7%-1.8%
8Global Bond Fund-2.5%-4.3%


The average MPF return per member is calculated using total MPF assets HK$1,183,036 millions of the previous month (31 March 2024). The number of MPF Scheme members was 4,754,000 as of 31 December 2023. The latest average assets per member was HK$248,851 as of 31 March 2024. The GUM MPF Composite Index return for April 2024 as of 30 April, 2024.

*The growth of all fund categories indexes is calculated by asset-weighted point-to-point growth. The data for February 2024 return is summarized from 1 April to 30 April 2024. 


The End

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