Hong Kong retail funds booked gross sales of US$82.6 billion in the first three quarters of this year - surpassing the full-year total for 2024 - as inflows into fixed-income products surged, according to data from the Hong Kong Investment Funds Association (HKIFA).
Gross sales jumped 35 per cent year on year. Net sales reached US$15.7 billion year to date, the highest level in the past decade and 44 per cent higher than a year earlier, exceeding the US$12.3 billion of net inflows recorded for all of 2024.
"With record-breaking net inflows and impressive sales momentum so far in 2025, Hong Kong's retail fund market is showing renewed investor confidence, underpinned by strong global market performance, especially in Asia and Europe," said Nelson Chow, co-chair of the HKIFA Unit Trust Subcommittee, in a statement on Wednesday.
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Fixed-income funds remained the dominant driver, attracting US$10.8 billion in net inflows during the first three quarters. Mixed-asset funds drew US$1.7 billion, reversing last year's outflow trend.
Hong Kong retail funds booked gross sales of US$82.6 billion in the first three quarters - surpassing the full-year total for 2024. Photo: Sam Tsang alt=Hong Kong retail funds booked gross sales of US$82.6 billion in the first three quarters - surpassing the full-year total for 2024. Photo: Sam Tsang>
Money market funds, long favoured by investors seeking safe-haven and income-generating assets, attracted US$2.9 billion. However, they recorded net outflows for the first time since August, following consecutive monthly inflows since early 2024.
"Expectations of interest rate cuts have driven the recent net outflows from money market funds," said Simon Wong, co-chair of the Unit Trust Subcommittee.
Chris Iggo, chief investment officer of core investments at AXA Investment Managers, said in a report that continued central bank easing throughout 2026 was likely to benefit fixed-income markets. Bond markets should potentially enjoy solid central bank support next year, he added.
"We expect lower interest rates in the US as policymakers respond to weaker labour market trends, and lower rates in Europe because of further declines in inflation," Iggo said.
Federal Reserve officials have backed an interest-rate cut next month.
Story ContinuesAmong individual fund categories, global bonds recorded net inflows of US$11.4 billion, while global equities and global mixed assets also attracted strong demand. China equities saw net redemptions of US$492 million, while North America bonds posted the largest net redemptions of US$1.1 billion.
"With expectations of lower interest rates ahead, investors who previously favoured money market funds should reassess their strategies," Chow said. "While market sentiment towards [artificial intelligence] and the broader technology sector remains positive, investors are reminded to be selective amid higher stock valuations."
Meanwhile, HKIFA - which represents the local units of international fund houses - launched a new investor education animation series, "Fund Master TV", to raise public awareness of fund investing and reinforce anti-scam vigilance. The short videos are available on HKIFA's website and social media platforms, including YouTube, Facebook, Instagram and LinkedIn.
This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2025 South China Morning Post Publishers Ltd. All rights reserved.
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