AIA: mini-QFII will have little impact on MPF funds

Vice-Premier Li Keqiang announced measures supporting Hong Kong’s financial markets, including the mini-QFII (RMB Qualified Foreign Institutional Investor) scheme. AIA (Trustee) chief executive Bonnie Tse said mini-QFII will first affect retail funds; MPF funds face more restrictions, so the impact will be secondary and mild.

What is mini-QFII?

Mini-QFII lets offshore institutions invest in mainland securities markets with offshore renminbi. It was unveiled alongside a “mini through-train” (mainland-listed Hong Kong equity ETFs) and foreign direct investment measures.

What does it mean for MPF?

Tse noted MPF funds are conservatively positioned with tighter investment restrictions, so no near-term impact is expected. She added that AIA’s four new MPF funds can all buy ETFs, though it’s too early to assess what mainland Hong Kong-equity ETFs will bring.

Learn about MPF investment rules at the MPF education hub.