The new chair of the Mandatory Provident Fund Authority wants to usher in wider investment choices. While well-intentioned, they could create new risks, warn experts.
The head of Bank Consortium Trust says an automatic mechanism to determine levels of contribution to Hong Kong's Mandatory Pension Fund would solve several issues.
Financial services secretary KC Chan sees Shanghai's free economic zone as a boon for Hong Kong, while indicating that a private pension scheme to run alongside the city's MPF scheme would be welcome.
The index provider says its new products negate the need for managers to currency hedge to meet the Mandatory Provident Fund's 30% rule on minimum HK dollar assets.
The low level of contributions made to Hong Kong's Mandatory Provident Fund scheme limits what members can invest in, argues Darren McShane of the MPF Authority.
Contributors to Hong Kong's defined contribution scheme will likely be able to access their money in phased withdrawals. Previously they had to wait until 65.