Hong Kong pushes MPF reforms to let workers invest in local ETFs

The Chamber of Hong Kong Listed Companies is urging the Mandatory Provident Fund (MPF) regulator to simplify the approval process for Hong Kong‑listed exchange‑traded funds (ETFs) and to amend the MPF framework so members can select ETFs directly. In the short term, the chamber proposes a streamlined approval pathway for ETFs that meet existing criteria, allowing them to be added to MPF investment options without individual fund reviews. Over the medium to long term, it seeks changes that would let MPF participants pick qualified ETFs themselves, starting with simple, non‑complex products and expanding later.

Current MPF assets total about HK$1.5 trillion, with only 10‑15 % invested in ETFs and just 2‑5 % in locally listed ETFs. The chamber argues that broader access would boost market liquidity, lower investors’ costs and attract more capital to Hong Kong’s stock market, citing Australia’s mature pension system as a model. The proposal will be submitted to the Hong Kong government during its two‑month public consultation on the first five‑year plan.