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Key Benchmarks Performance

Korea’s KOSPI Composite index posted an outstanding performance of 19.9% and became the top performing market among global and Asia markets in October. Among all Asia markets, Japan and Taiwan are also outperforming markets and posted 16.6% and 9.3% in October, separately, while Hong Kong market became the bottom performing market which posted negative return of 3.5%. Hong Kong Hang Seng Index posted an excellent performance of 29.1% for the year-to-date period (as of 2025/10/31). Korea, Japan and Vietnam were the best outperforming markets in Asia, posting 71.2%, 45.2% and 38.3%, respectively, while Philippine, Thailand, and Malaysia were the bottom performing markets and posted negative return of 9.2%, 6.5% and 2%, separately, for the year-to-date period (as of 2025/10/31).

Table 1: Global Key Benchmarks Performance

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Source：LSEG Lipper, as of 2025/10/31

Asset Types Analysis

The total 376 Hong Kong Mandatory Provident Fund (MPF) registered for sale in Hong Kong posted positive return of 0.5% on average in October of 2025 (as of 2025/10/31). Across all fund types, the average returns were 17.1% (YTD), 16.1% (1Y), 46.6% (3Y), and 24.3%(5Y). Equity funds outperformed other asset types, with a 1-month return of 0.3% and a YTD return of 26.1%. The 1-year and 3-year averages were strong at 24.7% and 72.3%, respectively. Over 5 years, equity funds also delivered the highest average return of 39.2%. 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 Korea, Equity Sector Healthcare, Equity Asia Pacific, Equity Asia Pacific ex Japan and Equity Japan posted 15.8%, 4.3%, 4.3%, 3.9% and 3.9% on average, separately and took the leading positions among all MPF classifications in October. For the year-to-date (as of 2025/10/31), Equity Korea, Equity Greater China, Equity Hong Kong and Equity Asia Pacific posted an outstanding performance with an average return of 87.6%, 34.6%, 32.8% and 32.3%, separately while Money Market HKD only posted positive return of 1.8%.

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

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Source：LSEG Lipper, as of 2025/10/31, in Hong Kong Dollar

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

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Source：LSEG Lipper, as of 2025/10/31, in Hong Kong Dollar

Outlook

Hong Kong has reported a 3.8% expansion in its real gross domestic product (GDP) in the third quarter of this year, the strongest quarterly performance in recent 18 months, supported by steady gains in exports, consumption and investment. Total goods exports grew 12.1% year-on-year in real terms, thanks to strong demand for electronics-related products and buoyant regional trade flows in Asia. Exports of services also expanded by 6.3% in real terms, mainly supported by sustained increases in inbound tourism and cross-boundary traffic, and cross-border financial service activities. Domestically, private consumption expenditure rose 2.1% year-on-year in real terms, reflecting the continued recovery of the local consumption market.

Overall investment expenditure also saw an accelerated increase of 4.3% in real terms over a year earlier, alongside the economic expansion and stabilization in the residential property market. Meanwhile, the labour market softened in Q3, with the seasonally adjusted unemployment rate rising to 3.9% from 3.5% in the preceding quarter. Hong Kong’s economy is on track to post a third consecutive year of growth and is expected to expand further next year, while upcoming labor market figures are likely to show steady conditions. Sustained moderate growth of the global economy in the near term, coupled with easing China-US trade tensions of late and persistent demand for electronics-related products should lend support to Hong Kong’s exports of goods and economy.

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