Hong Kong’s pension fund posts 4.5 per cent investment gain in first half, but policy and regulatory challenges lie ahead
Hongkongers probably earned the most returns in two years from their US$154 billion pension scheme in the first half of this year from a rally in global stocks. These winnings could be eroded by policy tightening in the US and a tech sector crackdown at home by China.
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The Mandatory Provident Fund (MPF) generated HK$52.6 billion (US$6.8 billion) of investment income in the January to June period, according to calculations by the Post based on data provided by Refinitiv. That is equivalent to a 4.5 per cent gain, or about HK$11,690 per member. The scheme suffered a 2.7 per cent loss, or HK$7,752 each, in the same period last year when the Covid-19 pandemic struck.
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The MPF oversees some HK$1.2 trillion of funds for about 4.5 million scheme contributors in the city, and offers more than 400 investment vehicles from asset management companies worldwide, including stocks, bonds and exchange-traded funds. The retirement nest-egg was seen as insufficient for retirement for nine out of 10 Hongkongers between the ages of 50 and 59, according to a recent survey.
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Read more @South China Morning Post
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