It’s been a bad year for Hong Kong residents counting on Greater China for their retirement savings.

The mandatory provident fund — Hong Kong’s pension system — has lost about 11% since the start of 2021, walloped by China’s industry crackdowns and Covid Zero policy, which overshadowed gains in US assets. That erased HK$130 billion ($17 billion) in total, or about HK$28,300 for each account at the end of May, according to researcher MPF Ratings Ltd.

The retirement losses add to the woes of residents already ground down by stringent virus restrictions and setbacks to civil rights in a landmark 25th handover anniversary year where President Xi Jinping is expected to visit.

“People are expecting and hoping that Beijing will issue favorable policies after a tough period,” said Rujing Meng, who lectures on finance at the University of Hong Kong. “The handover anniversary would be a good opportunity to showcase support for the city, especially if Xi himself is visiting.”

Hong Kongers’ pension fund counts Chinese and local equities as its biggest asset class — a function of the benchmark Hang Seng Index’s returns during a decade of unprecedented wealth creation in the world’s No. 2 economy. That run came to an end in 2021, when tech and property companies plunged at the height of Beijing’s campaign to rein in the private sector.

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