Key Benchmarks Performance
The global equity markets showcased a stark performance divide throughout February 2026, with Asian indices emerging as the clear leaders in capital appreciation. The KOSPI Composite led the global cohort with an exceptional monthly return of 19.5 percent, a momentum that has propelled its Year-to-Date (YTD) performance to a dominant 48.2 percent. This aggressive growth was mirrored by the Thailand SET, which gained 15.3 percent in February to reach a 21.3 percent YTD return, and the Taiwan SE, which rose 10.5 percent during the month. Japan’s Nikkei 225 also maintained its upward trajectory, matching Taiwan’s double-digit monthly growth and securing a solid 16.9 percent YTD gain.
In contrast, Western markets and major U.S. benchmarks experienced a more tempered or even defensive period. While European indices like the FTSE 100 and CAC 40 managed modest monthly gains of 6.7 percent and 5.6 percent respectively, U.S. indices faced notable headwinds. The S&P 500 slipped by 0.9 percent in February, leaving its YTD growth nearly flat at 0.5 percent, while the tech-heavy NASDAQ Composite retraced by 3.4 percent. Interestingly, within the U.S. market, the Philadelphia Semiconductor Index remained resilient with a 14.3 percent YTD return despite a muted February, indicating that while broader tech sentiment cooled, specialized hardware sectors maintained investor confidence. The Dow Jones Industrial Average remained largely stagnant for the month, posting a marginal 0.2 percent increase.
Table 1: Global Key Benchmarks Performance
Source：LSEG Lipper, as of 26/02/28
Asset Types Analysis
The total 376 Hong Kong Mandatory Provident Fund (MPF) registered for sale in Hong Kong posted positive return of 1.5% on average in February of 2025 (as of 26/02/28). Across all fund types, the average returns were 5.2% (YTD), 19% (1Y), 38% (3Y), and 17.1%(5Y). Mixed Assets funds outperformed other asset types, with a 1-month return of 2%. Equity funds outperformed with a YTD return of 7.3%. The 1-year and 3-year averages were strong at 27.9% and 55.5%, respectively.
Hong Kong MPF Performance by LGC Analysis
There are overall 376 Hong Kong Mandatory Provident Fund (MPF) registered for sale in Hong Kong market with a total 24 Lipper Global Classifications. Among all 24 classifications, Equity Korea, Equity Asia Pacific, Equity Japan, Equity Asia Pacific ex Japan and Equity Sector Healthcare posted 16.7%, 10.6%, 9.0%, 6.6% and 3.7% on average, separately and took the leading positions among all MPF classifications in February. For the year-to-date (as of 26/02/28), Equity Korea, Equity Asia Pacific, Equity Asia Pacific ex Japan, Equity Japan and Equity Greater China posted an outstanding performance with an average return of 47.9%, 22.6%, 16.5%, 14.4% and 7.7%, separately while Money Market HKD only posted positive return of 0.3%.
Figure1：Top/Bottom 10 Hong Kong MPF Performance by Lipper Global Classifications, February 2026
Source：LSEG Lipper, as of 26/02/28, in Hong Kong Dollar
Figure2：Top/Bottom 10 Hong Kong MPF Performance by Lipper Global Classifications, Year-to-Date (as of 26/02/28)
Source：LSEG Lipper, as of 26/02/28, in Hong Kong Dollar
Outlook
Official data shows that Hong Kong’s economy expanded by 3.5 percent in 2025, marking a robust third consecutive year of growth and setting a positive trajectory for the immediate future. Projections for 2026 suggest a continued expansion between 2.5 percent and 3.5 percent, underpinned by the stabilizing influence of the Chinese mainland. As the mainland implements proactive macroeconomic policies aimed at stimulating domestic demand and prioritizing high-quality development, Hong Kong stands to benefit from these propitious conditions. This regional momentum is expected to sustain decent growth in goods exports and steady domestic demand, while improving business sentiment and anticipated interest rate reductions are likely to provide a necessary tailwind for asset markets and capital investment. Looking toward the medium term, from 2027 to 2030, the economy is estimated to maintain an average real growth rate of 3 percent annually, with underlying inflation stabilizing at an average of 2 percent.
However, this optimistic domestic outlook is increasingly challenged by heightening geopolitical volatility. The conflict in Iran and the subsequent de facto closure of the Strait of Hormuz have reintroduced acute vulnerabilities into the global energy and maritime sectors. While the immediate consequences of surging oil prices and inflated freight rates are significant, they reflect deeper systemic risks regarding energy security and the resilience of maritime risk management. For a premier global shipping hub like Hong Kong, these disruptions necessitate a fundamental reassessment of logistics stability and an accelerated transition toward a greener, more resilient maritime industry.
Hong Kong’s strategic integration with the mainland provides a critical buffer against these external shocks. According to the 2024 Energy Statistics Report, over 80 percent of the city’s natural gas, LPG, and aviation fuel imports originate from mainland China, highlighting a vital supply chain dependency that offers relative security. Nevertheless, because approximately half of Hong Kong’s total energy imports are dedicated to international bunkering, the city remains highly sensitive to global maritime conflicts. Any sustained disruption to international shipping lanes or a tightening of the maritime insurance market poses a direct threat to Hong Kong’s status as a global logistics nexus, necessitating a strategic balance between leveraging mainland support and mitigating international operational risks.
