Hong Kong's pension fund to allow more gold ETF investments, aiming to turn the city into a gold trading hub.
Key facts
- •The MPFA oversees HK$1.53 trillion worth of pension funds
- •The pension fund will soon be able to invest in more gold ETFs
- •The change aims to add more gold ETFs for the 4.8 million MPF members
- •ETFs will be banned from using derivatives
- •Exposure to MPF funds will be capped at 10 per cent
Hong Kong's pension fund will soon be able to invest in more gold exchange-traded funds (ETFs) as part of the government's push to turn the city into a trading hub for gold. The Mandatory Provident Fund Schemes Authority (MPFA) oversees HK$1.53 trillion worth of pension funds.
By the numbers
Rule Changes
The MPFA plans to amend the rules about gold ETF investment later this week, allowing all gold ETFs that meet certain criteria to qualify as a Mandatory Provident Fund (MPF) investment. This change aims to add more gold ETFs for the 4.8 million MPF members to choose from.
Risk Management
There will be sufficient risk management measures in place, banning the ETFs from using derivatives, and their exposure to MPF funds will be capped at 10 per cent.
This article was independently rewritten by ManyPress editorial AI from reporting originally published by SCMP Business.
