GUM: Strong Dollar Investment Risk Preference Gradually Increasing, Approximately 3 Billion Hong Kong Dollars Flowing into Equity Funds in the Past Two Months

Hong Kong Trillions of MPF consultant company GUM released the August Trillions of MPF market analysis report, stating that as of the end of August, total assets in the Trillions of MPF market increased by 1.8% to HK$1.48 trillion. GUM estimated that there was a net inflow of HK$2.02 billion into stock funds in August, while mixed asset funds and lower risk assets (fixed income funds) saw net outflows of approximately HK$150 million and HK$1.87 billion respectively. It is estimated that a total of HK$3 billion flowed into stock funds in July and August. The top five asset categories with the greatest net inflows were: "US Stock Funds," "Default Investment Strategy - Core Accumulation Fund," "Hong Kong Stock Funds (Index Tracking)," "Global Stock Funds," and "Japanese Stock Funds." The top three funds, US stock funds, DIS core funds, and Hong Kong stock funds (tracking index) have been the top net inflow funds for two consecutive months, with the same rankings as in July. The top five asset categories with the greatest net outflows were: "Trillions of MPF Conservative Funds," "Mixed Asset Funds (80% to 100% stocks)," "Guaranteed Funds," "Mixed Asset Funds (60% to 80% stocks)," and "Other Stock Funds." GUM's strategy and investment analysis director, Yun Tianhui, pointed out that in the past two months, members' investment attitudes have become more aggressive, allocating funds to stock funds, with net inflows mainly into US and Hong Kong stock funds for two consecutive months. US stock funds saw a net inflow of HK$920 million in August; after large net outflows in March and April, members began to gradually return to US stock funds. Hong Kong stock funds (index tracking) saw a net inflow of HK$820 million, possibly due to members gaining confidence in Hong Kong stocks influenced by the strong performance of the Hang Seng Index.