Regulator relaxes approval process for gold ETFs in HK$1.53 trillion pension scheme, capping exposure at 10% without derivatives.
Hong Kong’s Mandatory Provident Fund Schemes Authority will streamline gold ETF investments for its HK$1.53 trillion pension fund, replacing case-by-case approvals with a standardized process. The move aims to channel retirement capital into gold ETFs while maintaining a 10% exposure cap and banning derivatives to limit risk.
The regulator oversees 4.8 million members and plans to implement the changes this week. Analysts expect gradual inflows as more products qualify, rather than an immediate demand surge. The shift aligns with Hong Kong’s broader strategy to become a regional gold trading hub.
Gold price forecasts remain divided, with projections ranging from $4,800 to $6,000 amid varying market outlooks. The rule change may modestly boost long-term demand for physical gold and ETF issuance.