永明彩虹強積金計劃 - cplatform.mpfa.org.hk

1 Sun LifeRainbow MPF Scheme 2nd Quarter 2018 As at 30/06/2018 Quarterly Update Important Note ( ) / ( ) / 65 60 ( ( ) ) 2016 5 27 3183 1888 Sun Life Rainbow MPF Scheme (the Scheme ) is a mandatory provident fund scheme. Investment involves risks and not all investment choices available under the Scheme would be suitable for everyone.

2 There is no assurance on investment returns and your investments/accrued benefits may suffer significant loss. You should consider your own risk tolerance level and financial circumstances before making any investment choices. When, in your selection of funds, you are in doubt as to whether a certain fund is suitable for you (including whether it is consistent with your investment objectives), you should seek independent financial and/or professional advice and choose the fund(s) most suitable for you taking into account your circumstances. Members reaching 65th birthday or early retiring on reaching age 60 may apply (in such form and on such conditions as the Trustee may from time to time determine but subject to the Mandatory Provident Fund Schemes Ordinance and the Mandatory Provident Fund Schemes (General) Regulation) for payment of the MPF Benefits in instalments.

3 Please refer to "Withdrawal of Benefits" of the Principal Brochure of the Scheme for further details. With effect from 27 May 2016, certain restructuring has taken place in relation to the Sun Life Rainbow MPF Scheme, such as the change of investment manager, the certain changes of the investment policy and the names of constituent funds. For more details about the restructuring, the certain changes of the investment policy and the names of the constituent funds, please refer to the latest Principal Brochure of the Scheme or call our Pensions Service Hotline 3183 1888. You should not invest based on this material alone and you should read the Principal Brochure carefully for further details including risk factors. / 2018 2017 2025 5 7.

4 610 M2 4 1% PMI 50 4 5 / MSCI ( ) Hong Kong Equity/Greater China Equity Hong Kong market ended lower in the second quarter of 2018, with Hang Seng Index down While strong corporate results for 2017 had been well flagged to investors during the first quarter, there were few positive news to follow.

5 Market was generally range-bounded amid shrinking Stock-Connect southbound fund inflow, mainly owing to continued deleveraging within the Chinese economy. Trade friction between the US and China worsened towards the end of the quarter with risk-off sentiment leading to sharp pullback in the market. Tech hardware and property sectors were the hardest hit. The former mainly suffered from Trump administration s targeting China s "Made in China 2025" plan, while the latter was affected by surging financing costs in both onshore and offshore markets. Outperformers were those defensive names with heavy domestic sales exposure, such as consumer staple and healthcare. China equity market encountered heavy correction pressure in the second quarter. Like other emerging markets, China equities were badly hit by its weak currency and investors risk aversion sentiment.

6 Renminbi exchange rate fell during the second quarter, mainly due to US dollar s strength. The woe of onshore debt defaults, though not widespread, and worsened macro data also weighed on equity market. Shanghai Composite Index plunged in the quarter, the third straight quarterly decline in a row. Deteriorating macro climate was largely reflected in weaker-than-expected credit creation and money supply data in May. Total social financing value was only RMB761 billion, much lower than expectation of trillion. Money supply M2 growth was only year-on-year for the same month, compared to the market estimate of People s Bank of China cut commercial banks reserve requirement ratio by 1% in April, aiming to encourage lending activities.

7 Nonetheless, the move failed to rejuvenate equity market. On the other hand, two key leading indicators, being the official and Caixin manufacturing PMIs, held up above the 50 threshold during the quarter, indicating ongoing expansion of the economy. Taiwan s TWSE Index eased in the second quarter, outperforming greater China peers. Stronger-than-expected export orders for the months of April to May and weakened Taiwanese dollar led to resilient corporate earnings. Investors also expected escalating Sino-US trade tensions would in turn benefit Taiwanese exporters in the peak order season during the third quarter this year. Such positive expectation partially offset the pressure from foreign capital outflow. Among sectors, basic material, petrochemical, retailer and export-led textile names advanced while LCD makers and electronic manufacturing/service providers EquityMSCI AC Asia ex-Japan Index fell sharply in the second quarter by in US dollar terms, well behind global developed markets.

8 Global trade tensions, coupled with sharp deprecation in most Asian currencies, served to intensify risk-off sentiment. ASEAN were among the weakest regions, with Vietnam, Malaysia and Philippines led the decline. In particular, Malaysian equities fell after the unexpected election victory of Dr. Mahathir Mohamad s alliance, ousting the ruling coalition s sixty years in power. While this election result was well received by most global investors, market index failed to advance with huge profit taking activities kicking in instead. In North Asia, Korean equities also tumbled despite a preliminary deal struck between the US and North Korea regarding denuclearization in the Korean Peninsula. Certain leading tech companies faced brokers earnings downgrade in anticipation of poor smartphone sales going forward.

9 Market Review1 2018 ( ) 500 DAX CAC 100 225 MSCI ( ) MSCI 10 5 7 2 2 10 11 10 12 10 20 10 6 10 7 10 2 10 50 28 6 (PCE)

10 5 2% 3 6 (LIBOR) (HIBOR) 1 1% 1 3 6 102 89 72 700 6 24 1% (MLF) 1 6 5% Global EquityGlobal equity market remained volatile in the second quarter of 2018. Robust economic growth lifted corporate earnings, which saw broadest beat on company per share earnings growth in many years. However, strong earnings had little effect to boost share prices.