The Year of the Snake promises to bring more volatility to investments owned by the 4.7 million members of Hong Kong’s Mandatory Provident Fund (MPF), as they cherish the outstanding returns they saw in the concluding Year of the Dragon.
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Beijing’s efforts this week to support the nation’s stock market and economy preceded the Year of the Snake, which begins on January 29. The actions set the tone for what investors can expect to face in the new zodiac year, as US President Donald Trump unveiled measures likely to roil markets and heighten geopolitical tensions.
“In the Chinese zodiac, the snake symbolises wisdom, strategic thinking and the ability to maintain composure in challenging and volatile situations,” said Philip Tso, head of institutional business in Asia-Pacific at Allianz Global Investors. “We anticipate that volatility and geopolitical tensions will take centre stage, particularly under Trump’s ‘America first’ agenda and his proposed tariffs.”
The Year of the Snake is the sixth in the Chinese lunar calendar’s cycle of 12 zodiac-based years, each represented by an animal and its reputed attributes.
As of January 21, the 379 MPF investment funds gained 12.3 per cent in the Year of the Dragon, which kicked off on February 10 last year, according to MPF ratings, an independent pension research firm. That is on course for the sixth best lunar-year return since the city’s retirement scheme was launched in December 2000.
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In the two preceding years, MPF members lost 4.5 per cent in the Year of the Rabbit and 7.8 per cent in the Year of the Tiger, according to MPF Ratings.