Funds flocking to Japanese stocks, chasing short-term performance concerns revealed, Hong Kong's MPF reiterates long-term investment principles.

The research institution for Hong Kong's Mandatory Provident Fund estimates that as of the end of March, Trillions of MPF recorded a negative return of 1.98% in the first quarter, with total assets of approximately 1.535 trillion Hong Kong dollars, equivalent to an average account balance of 320,000 Hong Kong dollars per member. The research institution for Hong Kong's Mandatory Provident Fund estimates that net inflows into Trillions of MPF in the first quarter of this year were approximately 11.98 billion yuan, up 0.36% year-on-year, but 2.9% lower than the five-year average net inflow of 12.34 billion yuan. Within the net inflows, DIS (Default Investment Strategy) attracted nearly 35%, but traditional mixed asset funds recorded net outflows. Japanese stocks attracted 10.54%, a proportion that is approximately 13 times their market share (which only accounts for 0.81% of Trillions of MPF's total assets). This influx of funds highlights concerns among members chasing short-term performance. The Chairman of the research institution for Hong Kong's Mandatory Provident Fund, Chim John Paul, noted that members of Trillions of MPF seem to be using their accounts for short-term market speculation rather than focusing on long-term wealth growth. The research institution for Hong Kong's Mandatory Provident Fund believes that excessive pursuit of short-term performance should be avoided, reiterating that the risks of trying to time the market are often higher than continuing to hold and maintain diversified investments.