Advertisement
Rule change urged for Hong Kong pension fund to allow wider ETF choice for 4.8m members
Relaxing rules to widen ETF access will deliver stable returns at low cost while boosting local markets, chamber says
2-MIN READ2-MIN
2
Listen
The Chamber of Hong Kong Listed Companies is urging the pension regulator to relax rules so the 4.8 million members of the Mandatory Provident Fund (MPF) can invest more in Hong Kong-listed exchange-traded funds (ETFs), according to its chairman.
“ETFs can provide stable returns to MPF members while charging low management fees,” said chamber chairman Chan Ka-keung in a media briefing last week. “If more members can invest in ETFs, it would [broaden their] choices, while the city would also be promoting these types of investment products.”
More ETFs based in Hong Kong would help promote liquidity in the local capital market, Chan said. “It will be a win-win situation for the MPF and the stock market,” he added.
The chamber plans to submit the proposal to the Hong Kong government, which is currently conducting a two-month public consultation on its first five-year plan.
Chan is also chairman of digital lender WeLab Bank and Hong Kong’s former secretary for Financial Services and the Treasury.
The chamber cited market estimates showing that of the HK$1.5 trillion (US$191 billion) in MPF assets as of March, about 10 to 15 per cent were invested in ETFs, but most were listed overseas. Only about 2 to 5 per cent were invested in Hong Kong-listed ETFs.
Advertisement
Select Voice
Select Speed
1.00x