ExclusiveHong Kong pension fund to ease rules and increase gold ETFs, source says
MPFA to relax gold ETF investment approval rules as part of Hong Kong government’s push to turn the city into a regional gold trading hub
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 the precious metal, a source with knowledge of the matter told the South China Morning Post.
The Mandatory Provident Fund Schemes Authority (MPFA), which oversaw HK$1.53 trillion (US$195 billion) worth of pension funds as of the end of March, planned to amend the rules about gold ETF investment later this week, the person said.
“The change is aimed at adding more gold ETFs, so that the 4.8 million members of the MPF will have more products to choose from,” according to the person with knowledge of the rule changes.
“It is also part of the Hong Kong government’s goal to turn the city into a regional gold trading hub.”
There would be sufficient risk management measures in place banning the ETFs from using derivatives, while their exposure to MPF funds would be capped at 10 per cent, according to the source.