Mandatory Provident Fund

The Chamber of Hong Kong Listed Companies is urging the pension regulator to relax rules for Hong Kong's Mandatory Provident Fund (MPF) to allow 4.8 million members to invest more in Hong Kong-listed ETFs. Chamber chairman Chan Ka-keung stated ETFs offer stable returns and low fees, which would broaden investment choices and benefit the city.

Hong Kong’s Mandatory Provident Fund (MPF) reported a HK$24.4 billion loss in June, reducing first-half gains to HK$88.8 billion. On average, each of the 4.8 million members experienced a HK$5,087 loss in June but still gained HK$18,500 over the first six months of 2026, according to MPF Ratings.

Sixteen individuals in Hong Kong were arrested for allegedly using falsified medical certificates to fraudulently withdraw HK$4.3 million from the Mandatory Provident Fund by claiming loss of working ability or terminal illness. The suspects, aged 29 to 63 and employed in roles such as chefs, drivers, and waiters, included two core members of a syndicate.

Hong Kong retirees may need up to US$910,000 to support themselves due to the city's longevity, but the average Mandatory Provident Fund balance is significantly lower at HK$319,561. A study highlights a gap between retirement needs and savings, urging government action to address it.