The Hong Kong Mandatory Provident Fund Schemes Authority has updated its guidelines to replace individual approval of gold exchange traded funds with categorical approval for Mandatory Provident Fund permissible investments, effective immediately. The change means a gold ETF can be invested in by MPF funds without separate MPFA approval if it meets specified conditions, broadening the pool of eligible products for MPF investment. To qualify, a gold ETF must be authorized by the Securities and Futures Commission, listed on the Hong Kong Stock Exchange, structured as a physical gold ETF and not classified as a derivative fund. MPFA said the shift reflects its review of the asset classes available to MPF funds and the absence of major operational issues since gold ETFs were introduced into the MPF system. The existing limit remains in place, with an MPF fund's investment in gold ETFs capped at 10% of the fund's net asset value. Separately, MPFA welcomed the Government's plan to introduce a bill in the fourth quarter to amend MPF legislation so that an MPF fund can concurrently invest in MPFA-approved fund building blocks and individual permissible investments such as gold ETFs and real estate investment trusts. If enacted, that change would give trustees and investment managers greater flexibility and could support wider use of gold ETFs within MPF portfolios.
Hong Kong Mandatory Provident Fund Schemes Authority2026-07-07
Hong Kong Mandatory Provident Fund Schemes Authority moves gold ETF approvals to categorical basis while retaining 10 percent MPF fund cap
The Hong Kong Mandatory Provident Fund Schemes Authority has shifted gold ETF approvals for MPF investments from an individual to a categorical basis, allowing eligible products to be used without separate MPFA approval. Eligible ETFs must be Securities and Futures Commission-authorized, Hong Kong-listed, physical gold ETFs and not derivative funds. The 10% net asset value cap on MPF fund investments in gold ETFs remains unchanged.