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Key Benchmarks Performance

Hong Kong’s Hang Seng Index rose 1.2% in August and posted a remarkable 25% gain for the year-to-date (as of 2025/08/31). China Shanghai Composite Index rallied 8% in August and posted positive return of 154.1% for the year-to-date period. Among all Asia markets, Vietnam’s VN Index was the best outperforming market and rallied for 12% in August and posted positive return of 32.8% for the year-to-date period, making it one bof the best performing market of Asia region. Korea, China, Brazil and Indonesia posted positive return of 8%, 6.2%, 5.4%, and 4.6%, separately, in August. US S&P 500 and the NASDAQ Composite Index hit a record high and posted positive returns of 1.9% and 1.6% separately. Korea and Vietnam both posted  an outstanding performance of 32.8% for the year-to-date period, while Thailand, Philippine and Malaysia were the underperforming market and posted negative return of 11.7%, 5.7% and 4.1%, or the year-to-date period, separately.

Table 1: Global Key Benchmarks Performance

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Source：LSEG Lipper, as of 2025/08/31

Asset Types Analysis

The total 376 Hong Kong Mandatory Provident Fund (MPF) registered for sale in Hong Kong posted positive return of 1.4% on average in August of 2025 (as of 2025/08/31). Across all fund types, the average returns were 12.7% (YTD), 14% (1Y), 26.1% (3Y), and 16.8%(5Y). Equity funds outperformed other asset types, with a 1-month return of 2.1% and a YTD return of 19.1%. The 1-year and 3-year averages were strong at 23.4% and 37.6%, respectively. Over 5 years, equity funds also delivered the highest average return of 26.9%. Equity funds consistently delivered the strongest returns across all timeframes.

Hong Kong MPF Performance by LGC Analysis

There are overall 376 Hong Kong Mandatory Provident Fund (MPF) registered for sale in Hong Kong market with a total 24 Lipper Global Classifications. Among all 24 classifications, Equity Japan, Equity Greater China, Equity Sector Healthcare and Equity China posted 4.5%, 3.9%, 3.7% and 3.2% on average, separately and took the leading positions among all MPF classifications in August. For the year-to-date (as of 2025/08/31), Equity Korea, Equity Hong Kong and Equity Greater China posted an outstanding performance with an average return of 51.3%, 27.8% and 26.5%, separately while Money Market HKD only posted 1.6%.

Figure1：Top/Bottom 10 Hong Kong MPF Performance by Lipper Global Classifications, August 2025

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Source：LSEG Lipper, as of 2025/08/31, in Hong Kong Dollar

Figure2：Top/Bottom 10 Hong Kong MPF Performance by Lipper Global Classifications, Year-to-Date (as of 2025/08/31)

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Source：LSEG Lipper, as of 2025/08/31, in Hong Kong Dollar

Outlook

Hong Kong Trade Development Council revealed an uptick in confidence among exporters in the third quarter of 2025, with indicators of current performance and export expectations both reaching their highest marks since January last year. The current index for business performance rose to 53.3 from 49.6 in the previous quarter, while the outlook index for the upcoming quarter leaped to 54.3 from 49, according to the HKTDC’s Export Confidence Index survey report. Both indexes remain above the 50-point optimism threshold.

According to data released by the Hong Kong Special Administrative Region government’s Census and Statistics Department, the SAR’s exports recorded a year-on-year growth of 12.7 percent in terms of value in the first seven months of this year. Business conditions in private sector have also notably improved. The headline seasonally adjusted S&P Global Hong Kong SAR Purchasing Manager’s Index rose to 50.7 in August — the highest since the beginning of the year. Companies have increased their output for the first time in five months, particularly in the domestic market.

Beijing floated the idea of building a free-trade zone involving the mainland, Hong Kong and Macau in 2021, aiming to better integrate the two SARs into the country’s overall development. Beijing reiterated its pledge to create a “single free-trade zone” incorporating mainland China, Hong Kong and Macau, as it seeks to deepen economic ties with the two special administrative regions (SARs) amid ongoing trade tensions with the US. It is expected to continue to support Hong Kong’s accession to the Regional Comprehensive Economic Partnership to expand its external economic and trade network. Hong Kong will play a bridging role in infrastructure connectivity, trade facilitation and financial integration, expanding trade and investment scale with partner countries.

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