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Expand Hong Kong’s MPF investment choices, lure mainland pension funds: financial council
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Enoch YiuPublished: 2:30pm, 8 Sep 2026Updated: 2:32pm, 8 Sep 2026
Hong Kong should consider allowing the Mandatory Provident Fund to invest in more asset classes, and lure more long-term patient mainland capital, such as pension funds, to invest globally through the city, the Financial Services Development Council (FSDC) said in a report on Tuesday.
The MPF, the city’s compulsory retirement scheme, now has total assets of HK$1.67 trillion (US$213 billion) and invests in stocks, bonds and deposits. The FSDC suggests allowing a portion of the funds to be invested in alternatives and infrastructure.
The council also urged the city to implement further reforms to reduce the time and costs associated with new listings and other fundraising activities, and to introduce a corporate rescue plan to help troubled companies restructure.
These are among the core recommendations issued by the FSDC in a report that collected views from more than 600 market participants on how to further promote the Hong Kong capital market. The report was released ahead of Chief Executive John Lee Ka-chiu’s anticipated release of the city’s first five-year plan on September 16.
The FSDC, a government-backed think tank, conducts research to strengthen the city’s position as an international financial centre. Many of its recommendations have previously been adopted by the government and regulators.
Elevated global uncertainties are driving investors to look for opportunities that combine growth, market stability and risk diversification
Andrew Weir, vice-chairman of the FSDC, said the report was an execution road map focused on enhancements in five areas, which he called the “five I’s”: issuer, investor, intermediary, instrument and infrastructure.
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