Posted inFund Flows

Hong Kong reverses fund net outflows in Q4 2022

The net asset value of all asset classes also increased during the fourth quarter, according to the Securities and Futures Commission.
Drone view of Hong Kong city

As of the end of 2022, assets under management of Hong Kong-domiciled funds came in at $165.2bn, up 11% from three months earlier, according to the Hong Kong Securities and Futures Commission (SFC)’s latest quarterly report.

Net fund inflows during the period were $3.6bn, a significant reversal from the net outflows of $0.1bn during the previous quarter.

When segregated by asset class, all assets showed an increase in net asset value at the end of the year compared with the end of September.

Total NAV ($bn) as at 31 December 2022Total NAV ($bn) as at 30 September 2022Change (%)
Money market14.3111.2826.86
Feeder funds21205
Source: Quarterly Report, October – December 2022, SFC

Given market volatility and uncertainty, money market funds remained one of investors’ favourites last year.

Compared with the end-September figure, the net asset value of money market funds by the end of the year increased almost 27% to $14.31bn.

The largest asset class, equity funds, on the other hand, recorded a quarterly increase in asset value of 12.38%.

The last quarter of 2022 also saw a larger number and greater variety of investment products authorised or registered by the SFC.

The regulatory watchdog approved 58 unit trusts and mutual funds during the period, including 33 Hong Kong-domiciled funds, as well as one investment-linked assurance scheme, one mandatory provident fund pooled investment fund and 54 unlisted structured investment products for public offering in Hong Kong.

As a part of the plan to develop an ecosystem for virtual assets, the SFC also authorised the first two virtual asset futures ETFs in Hong Kong during the quarter.

The CSOP Bitcoin Futures ETF and CSOP Ether Futures ETF were listed on the Stock Exchange of Hong Kong on 16 December, are actively managed and primarily invest through either Bitcoin futures or Ether futures traded on the Chicago Mercantile Exchange.

Part of the Mark Allen Group.