The Hong Kong Investment Funds Association’s fund sales data shows that the total sales of retail funds in Hong Kong for the first quarter of this year reached 19.8 billion USD, a 69% increase compared to the previous quarter and also a new high since the third quarter of 2021.
Bond funds accounted for nearly half of the total sales, reaching 8.95 billion USD, more than doubling from the previous quarter. Net inflows for the first quarter were recorded at 3.8 billion USD, reversing the net outflows of the past two quarters and also the highest amount in three years.
By asset category, bond funds received the most net inflows in the first quarter of this year, totaling 4.1 billion USD; followed by money market funds at 630 million USD. Equity funds and mixed asset funds saw net redemptions of 650 million USD and 500 million USD respectively, marking the eighth consecutive quarter of net outflows.
The overall performance of retail funds in Hong Kong this year has been impressive, with most fund categories recording positive returns. As of May 18th this year, Central and Eastern European stocks, Hong Kong stocks, Greater China stocks, and North American stocks saw the largest increases, with average returns of 17.2%, 13.1%, 10.2%, and 9.6% respectively. In terms of bond funds, emerging market and high-yield bonds saw an average increase of 6.4%, while global bonds also showed a 0.3% increase. The global mixed asset returns for the same period were 4.9%.
Regarding the investment outlook for the second half of 2024, the Investment Fund Committee stated that the global economy remains resilient, coupled with the prospect of interest rate cuts which may benefit stocks.