Hong Kong’s Mandatory Provident Fund posted a return of 16.5% in 2025, the highest in eight years, as “robust” performance of the retirement scheme’s investments drove its assets to a fresh record high of HK$1.55 trillion (US$198.7 billion).
The Mandatory Provident Fund Schemes Authority (MPFA), supervisor of the MPF industry, announced the details in a statement on 6, saying that the return was the best since the 22.3% earned in 2017. It was also the sixth highest since the MPF was established in 2000.
“All MPF fund types posted positive returns over the past year,” the MPFA says, adding that the retirement plan’s “robust investment performance” drove assets to the new peak at the end of December 2025, erasing the HK$1.53 trillion reported in October.
The equity fund type, which accounts for 46% of MPF assets, earned a return of 24.8%, the best among the five types of funds.
The equity fund allocates more than 30% of assets to the Hong Kong stock market. The benchmark Hang Seng Index jumped 28% last year, driven primarily by the acceleration of the Chinese economy.
China’s economy expanded 5.2% over the first three quarters of 2025, faster than the 4.8% in the same period of the prior year and 5% in all of 2024.
In spite of the retirement scheme’s strong performance, the MPFA cautioned members against taking a short-term approach in managing their investments or trying to time the market.
“Scheme members are encouraged to make sound personal investment plans based on their life stage, financial situation, and risk tolerance,” the industry supervisor says.
