Bear market bites — Lo Ka-chung: preserve capital first

Global stocks are tumbling and bear-market gloom is thick. Economist Lo Ka-chung advises capital preservation first in volatile markets — investors can shift part of their money into steadier instruments and wait for calmer conditions.

Why preserve capital?

In bear markets, asset prices stay under pressure; aggressive bets can sink deeper. For those nearing retirement or about to use their money, preserving capital matters more than chasing returns.

What are the preservation options?

Cross-border RMB time deposits offer higher interest plus potential RMB appreciation. Conservative funds can also dampen portfolio swings.

What should MPF members do?

Near-retirees can shift toward conservative funds; younger members can keep contributing regularly, riding out the bear market with dollar-cost averaging. Never sell in panic at the lows.

Explore conservative funds at MPF fund comparison.