Preserving your MPF payout: cross-border RMB time deposits

With markets volatile, many workers about to withdraw their MPF fear shrinking assets. Kwan Cheuk-chiu of the Panview research centre suggests cross-border renminbi time deposits — higher interest plus potential RMB appreciation — as a capital-preservation strategy.

Why RMB deposits?

RMB time deposits pay more than HKD deposits, and the renminbi has long-term appreciation potential — the best of both worlds. Parking funds there lets you wait calmly for markets to settle.

What are the risks?

The RMB can fall as well as rise, and foreign exchange controls may affect fund movements. Allocate according to your needs; don’t bet everything on one currency.

What can MPF members do?

Members nearing retirement can shift toward conservative funds to dampen volatility. After withdrawing benefits at 65, allocate the money to suit your needs.

Explore conservative funds at MPF fund comparison.