Image Source: Pixabay
 

Global equities largely paused in November, with performance uneven across regions and sectors. The month’s tone was one of rotation and profit-taking, rather than a directional shift, as investors digested a year of outsized gains and recalibrated expectations ahead of key policy signals.

U.S. markets were broadly flat (S&P 500 +0.1%, Dow +0.3%, Nasdaq –1.5%), but Health Care surged (+9.3%), highlighting a rotation toward defensives amid macro uncertainty and valuation concerns in growth sectors. Heavyweights such as Korea’s KOSPI (–4.4%), Japan’s Nikkei (–4.1%), and Taiwan (–2.1%) pulled back, while semiconductors (SOX –2.8%) paused after a 41% YTD surge. Brazil (+6.4%), Indonesia (+4.2%), and Vietnam (+3.1%) outperformed, supported by resilient domestic demand and commodity tailwinds. Conversely, Thailand (–4.0%) and Philippines (–1.6%) continued to lag, underscoring uneven recovery across ASEAN.

Global equity markets delivered robust gains year-to-date. Leadership was concentrated in North Asia and technology, where Korea surged +63.6% and the Philadelphia Semiconductor Index climbed +41.1%, reflecting the structural tailwinds from AI and advanced manufacturing. Europe contributed meaningfully, led by Spain’s IBEX (+41.2%) on financial and cyclical strength, while emerging markets saw standout performance in Vietnam (+33.5%) and Brazil (+31.9%) amid resilient domestic demand and commodity support. In contrast, ASEAN laggards such as Thailand (–10.2%) and the Philippines (–7.8%) underscore persistent macro and earnings headwinds. Overall, YTD gains highlight a tech-driven rally complemented by selective value and cyclical plays, though dispersion signals the need for active positioning and risk management going into year-end.

Table 1: Global Key Benchmarks Performance

Source：LSEG Lipper, as of 25/11/30
 

Asset Types Analysis

The total 376 Hong Kong Mandatory Provident Fund (MPF) registered for sale in Hong Kong posted slightly negative return of 0.3% on average in November of 2025 (as of 25/11/30). Across all fund types, the average returns were 16.6% (YTD), 15.9% (1Y), 32.2% (3Y), and 16%(5Y). Bond funds outperformed other asset types, with a 1-month return of 0.4%. Equity funds outperformed with a YTD return of 25%. The 1-year and 3-year averages were strong at 25.1% and 47.2%, respectively.

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 Sector Healthcare, Equity Europe, Bond HKD, Money Market CNY and Equity Japan posted 10%, 1.4%, 0.8%, 0.6% and 0.6% on average, separately and took the leading positions among all MPF classifications in November. For the year-to-date (as of 25/11/30), Equity Korea, Equity Greater China, Equity Hong Kong, Equity China and Equity Asia Pacific posted an outstanding performance with an average return of 76%, 32.1%, 32%, 29.2% and 29%, separately while Money Market HKD only posted positive return of 2%.

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

Source：LSEG Lipper, as of 25/11/30, in Hong Kong Dollar
 

Figure2：Top/Bottom 10 Hong Kong MPF Performance by Lipper Global Classifications, Year-to-Date (as of 25/11/30)

Source：LSEG Lipper, as of 25/11/30, in Hong Kong Dollar

Outlook

Hong Kong remains caught in the crosswinds of the US–China tussle, edging closer to one of the worst-case scenarios we anticipated when Trump first took office. Yet, the city has scored some unexpected wins, with deal-making booming again—offering grounds for a more optimistic outlook. Meanwhile, China stays on track to meet its growth target as its export engine continues to defy tariffs and expectations alike.

Across the border, however, consumer sentiment remains subdued, with retail sales growing at the slowest pace since November. Policymakers may step in soon: Chinese officials are convening for the Fourth Plenum in Beijing, where party leaders are expected to chart a course toward stronger domestic spending—and perhaps a little more celebration.

Hong Kong’s financial markets are surging. The city has reclaimed a top-three spot globally for IPOs this year, thanks to heavyweight listings such as CATL and Zijin Mining. Daily stock turnover has more than doubled from a year earlier, averaging HK$240 billion and even hitting a record HK$621 billion on the first trading day after Trump announced global tariffs.

Residential sales have broadly recovered, though prices remain near the bottom as developers work to clear excess inventory. The city logged 45,647 transactions in the first nine months—about 86% of last year’s total, according to Cushman & Wakefield. Developers are cutting prices to move stock, but digesting the current supply will take time, limiting near-term price growth. With upside constrained, more residents are opting to lease rather than buy, pushing rents to record highs.

Looking ahead, Hong Kong’s 2026 Budget will focus on driving economic growth, accelerating innovation and technology adoption, advancing industrial upgrading, and creating high-quality jobs—while ensuring that the benefits of progress and diversification are broadly shared across the community.

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