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General Requirements

General Requirements

Spread of Investments

Generally, the total amount invested in securities and permissible investments issued by any one person may not exceed 10% of the total funds of a constituent fund.

Borrowing and Lending of Securities

No borrowing of securities is allowed.

Securities lending and repurchase agreements are permissible, to the limited extent as elaborated in the law.

Borrowing of Money

Borrowing of money is permissible only under certain limited conditions.

Securities and Futures

The funds of an MPF scheme may invest in fully paid-up shares listed on approved stock exchanges, investment grade debt securities or certain forms of convertible debt securities, and to a limited extent, listed warrants.

The funds may also, within limits, engage in hedging through certain financial derivatives.

Bank Deposits and Currency Exposure

The funds of an MPF scheme may be deposited with eligible banks subject to the spread of investments provided in the legislation.

An MPF fund must have at least 30% of its assets in Hong Kong dollars.

Details of these general requirements can be found in Schedule 1 to the MPF Schemes (General) Regulation and MPF Guidelines on Investment.

Restricted Investments (Employer-Sponsored Schemes)

Employer-sponsored schemes may not have more than 10% of their assets in shares or other securities of, or issued by, the participating employer or its associates.

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