According to sources, as part of the Hong Kong SAR government's plan to build a regional gold trading center, Hong Kong's Mandatory Provident Fund (MPF) will be able to invest in more gold ETFs in the future. The Mandatory Provident Fund Authority (MPFA), which regulates the MPF system, is expected to amend the rules for gold ETF investment later this week. As of the end of March this year, the MPFA-regulated MPF assets totaled approximately HK$1.53 trillion (approximately US$195 billion). Sources indicated that currently, the inclusion of gold ETFs in the MPF investment scope requires individual approval from the MPFA; in the future, this may be changed so that any gold ETF meeting the stipulated standards will automatically qualify for MPF investment, without the need for individual approval. This adjustment aims to increase the number of available gold ETF products, giving the 4.8 million MPF members more investment options. Meanwhile, sources revealed that the new rules will still retain strict risk management requirements, including: prohibiting the use of derivative leverage strategies in relevant gold ETFs; and maintaining the MPF's allocation limit for gold ETFs at 10%. (South China Morning Post)
