The Chamber of Hong Kong Listed Companies is advocating for changes to the pension regulator’s rules to allow the 4.8 million members of the Mandatory Provident Fund (MPF) to invest more in Hong Kong-listed exchange-traded funds (ETFs). Chamber chairman Chan Ka-keung stated that ETFs offer stable returns with low management fees, enhancing investment choices for MPF members and promoting local investment products.
Chan emphasized that increasing the number of Hong Kong-based ETFs would benefit both the MPF and the local stock market by promoting liquidity. The chamber plans to submit this proposal to the Hong Kong government, which is currently engaged in a public consultation regarding its first five-year plan.
Currently, market estimates indicate that around 10-15% of the HK$1.5 trillion (US$191 billion) in MPF assets are invested in ETFs, with a significant portion being overseas. Only about 2-5% is in Hong Kong-listed ETFs.
