Mandatory Provident Fund Rating: Hong Kong's MPF fund recorded a net inflow of approximately HK$11.9 billion in the first quarter, the lowest since 2021.

The research institution for Hong Kong's Mandatory Provident Fund released the "2025 First Quarter Trillions of MPF Asset Class Fund Flow Summary," estimating a net inflow of approximately HK$11.9 billion in the first quarter of 2025, the lowest since 2021 and 13.8% lower than the average net inflow of HK$13.8 billion in the first quarters of the past 5 years. The research institution pointed out that conservative funds accounted for the highest proportion of net inflows in the first quarter, attracting about 84.7%, the highest quarterly net inflow share since 2019. After becoming the most popular fund category for Trillions of MPF for two consecutive years and attracting over 50% of the annual net inflow share in 2024, U.S. stock funds recorded a net outflow in the first quarter of 2025, estimated at approximately HK$3.65 billion, the largest quarterly net outflow in six years. Fund flow data also show that during uncertain market periods, Trillions of MPF members are seeking "safe havens," with funds moving from stock funds to money market funds. In this turbulent environment, record net inflows into conservative funds, significant net outflows from stock funds, and the net inflow share of the six major Trillions of MPF sponsors exceeding their market share, indicate that Trillions of MPF members are seeking safe investment options. The Chairman of the research institution for Hong Kong's Mandatory Provident Fund, Tsung Chun-Pok, believes that cautious behavior by investors due to extreme market uncertainty is the primary reason for these trends, despite strong performance in the local stock market in the first quarter. Net outflows were seen in U.S. stock funds and China Hong Kong and China stock funds, while conservative funds experienced record high net inflows.