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Passive and Low-Cost Downside Risk Management for Hong Kong’s Mandatory Provident Fund (MPF)

The project proposes a passive, low-cost, cross-sectional downside-risk management framework that redesigns MPF equity building blocks. The HKAIFT SafeSelect Index will select the most resilient 80% of stocks, alongside benchmark-aware overlays with tracking-error and turnover controls suitable for MPF mandates. Besides, the project will enhance an AI-driven MPF Chatbot to improve retirement decision-making and financial literacy among MPF members.