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MPFA today (7 July) updated its guidelines to optimize the approval mechanism for gold exchange traded funds (ETFs) by moving from individual approval to categorical approval, with effect from today. This move aims to make available more gold ETFs to become options for investment by MPF funds.

An MPFA spokesperson said that MPFA continuously reviews and broadens the range of asset classes in which MPF funds may invest, with a view to providing the MPF industry with more diversified investment tools to enhance investment risk diversification and improve potential investment return for MPF scheme members.

MPFA understands that gold ETFs offer a low-cost, highly liquid, and transparent way to invest in gold. Under the current MPF legislative framework, two gold ETFs individually approved by MPFA are already permissible investments for MPF funds, enabling MPF funds to gain exposure to the gold market through investments in gold ETFs.

The spokesperson added that, to balance investment flexibility with investment risk, and taking into account that no major operational issues have been identified since gold ETFs were introduced to the MPF System, MPFA has decided to optimize the approval mechanism for gold ETFs by moving from individual approval to categorical approval. After the optimization, a gold ETF would become an MPF permissible investment without the need for individual approval by MPFA, provided that it meets the conditions specified by MPFA, including that the gold ETF is authorized by the Securities and Futures Commission and listed on the Hong Kong Stock Exchange, it must be a physical gold ETF, and it must not be classified as a derivative fund.

The current investment limit whereby an MPF fund’s investment in gold ETFs must not exceed 10% of the fund’s net asset value will remain unchanged. This investment regulation aims to effectively control investment risk and ensure that the interests of scheme members are adequately protected.

Meanwhile, MPFA welcomes Government’s plan to introduce a bill to amend the MPF legislation into the Legislative Council in the fourth quarter of this year to, among others, relax restrictions on MPF fund such that an MPF fund can concurrently invest in MPFA-approved fund building blocks (i.e. approved pooled investment funds and index-tracking collective investment schemes) and individual permissible investments (e.g. gold ETFs, real estate investment trusts). This proposal, if implemented, will provide more investment flexibility for MPF trustees and investment managers, and will be conducive to a wider use of gold ETFs by MPF funds for diversification and enhancing return potential. MPFA will render full support to the Government in the relevant work.

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7 July 2026