GUM: As of January 15th, the average loss per person in Hong Kong's Mandatory Provident Fund was HKD 3,184.
As of January 15th, 2024, the MPF (Mandatory Provident Fund) performance has been weak, with a decline of 1.3%, resulting in an average per capita loss of HKD 3,184. Stock, mixed asset, and fixed income fund indices all recorded negative returns in January, with stock funds experiencing the largest decline of 2.2%. For investors, US stocks still hold investment value, and Japanese stock funds are also assets worth considering for allocation. The Hong Kong stock market is currently at a low point, and investors need to be patient and wait for a rebound. There is a greater chance for the Hong Kong stock market to rise to around 18,000 points this year, but it will depend on the impact of news.
Zhitong App learned that on January 18th, GUM, a Mandatory Provident Fund (MPF) advisory company, released the performance of MPF for the first half of January 2024. As of January 15th, the MPF performance in 2024 was weak, with a decline of 1.3%, resulting in an average per capita loss of HKD 3,184. Stock, mixed asset, and fixed income fund indices all recorded negative returns in January, with stock funds experiencing the largest decline of 2.2%, while mixed asset funds and fixed income funds declined by 1.0% and 2.1% respectively. Hong Kong stock funds fell by 4.7%. Although the Hang Seng Index successfully held the 17,000-point level in 2023, it experienced a sharp decline in January, testing the important support level of 15,000 points.
In the previous 2024 investment outlook, Chen Ruilong, the Executive Director of GUM, stated that US inflation is under control and the economy is expected to achieve a soft landing, with market expectations of an early interest rate cut by the Federal Reserve. European inflation data is in line with market expectations, and it is expected that the European economy will gradually recover in 2024. Short-term high-risk investors may consider allocating some assets to US and European stock funds.
He pointed out that for high-risk investors actively managing MPF, US stocks still have investment value. In addition, Japan is moving towards moderate inflation, coupled with relatively low interest rates and a weakening US dollar, so investors actively managing MPF may consider allocating some assets to Japanese stock funds. Mainland China and Hong Kong stock markets are currently at low prices and valuations, providing potential returns for investors, but patience is required to wait for a rebound.
Regarding Hong Kong stocks, Chen Ruilong stated that it will be difficult for Hong Kong stocks to rise to 20,000 points this year due to geopolitical and consumption factors. He believes that it will take a long time for confidence to recover. There is a greater chance for Hong Kong stocks to rise to around 18,000 points this year, but it depends on the impact of news.