Think tank proposes GBA personal-pension pilot; MPFA responds

Our Hong Kong Foundation (OHKF) published a policy research report on Thursday (8 October) proposing a pilot scheme for “personal pension mutual connectivity” across the Greater Bay Area (GBA), which would let mainland third-pillar personal pension savings flow “southbound” into MPF-approved products in Hong Kong. Responding to the report’s MPF-related recommendations, the Mandatory Provident Fund Schemes Authority (MPFA) said personal pension money already has a route to invest in suitable Hong Kong financial products.

Pilot would start southbound, with tiered access

The report suggests the pilot first target GBA residents holding third-pillar personal pension accounts and personal pension funds, with investment quotas and a closed-loop settlement arrangement. Individual investors could invest in designated MPF approved constituent funds and approved pooled investment funds, with the Default Investment Strategy (DIS) offered as an option for those who do not want to make their own choices. Institutional investors could invest in a whitelist of products approved jointly by both regulators for moderate global diversification. In the short term, the report calls for expanding the Qualified Domestic Institutional Investor (QDII) quota, reserving dedicated quota for personal pension, and simplifying approval under the Mainland-Hong Kong Mutual Recognition of Funds arrangement.

OHKF Vice President and Executive Director of its Public Policy Research Institute, Yip Man-kei, said the initial proposal is to run the southbound leg first, as demand is expected to be larger, and to add the northbound leg once the scheme matures. He said mainland individuals investing in MPF-approved products would likely be supervised by the MPFA, while institution or fund investment in whitelist products would likely follow existing rules such as those for the QDII scheme. OHKF also stressed that funds would be managed on a closed-loop basis: after individual investors buy MPF-approved funds, proceeds must return to the mainland on redemption, with no outflow permitted.

Mainland personal pension accounts reach 150 million; 70pc idle

Citing data, the report says mainland personal pension accounts grew from 72.8 million in 2024 to 150 million in 2025 — a doubling — but 70 per cent are idle (inactive) accounts, 20 per cent make irregular contributions, and only the remaining 10 per cent contribute regularly. Although the annual contribution cap is 12,000 yuan, the average holding is only 2,900 yuan; total holdings are estimated at more than 145 billion yuan, held by just 30 per cent of the 150 million accounts. OHKF Assistant Research Director and Head of Healthcare and Social Innovation, Chow Ka-chun, described the mainland system as facing a pattern of “hot on opening accounts, cold on investing”.

MPFA: APIF channel already exists; policy objectives must be weighed

The MPFA said it supports any policy proposal that advances the interests of MPF scheme members and supports the development of the country’s multi-pillar pension system. It noted that personal pension money already has a route to invest in suitable Hong Kong financial products: current rules allow pension target funds, as personal pension investment options, to invest in MPF approved pooled investment funds (APIFs) that may be offered in mainland China under the northbound mutual recognition of funds arrangement. The MPFA added that in considering proposals to add channels for personal pension money to invest in Hong Kong financial products, it must weigh the differing impacts on national and Hong Kong retirement protection policies and whether they align with policy objectives.

Report also proposes GBA specialist care and a care navigation platform

Beyond pension finance, the report proposes strategically procuring specialist services — including cataract surgery, knee replacement and diagnostic imaging — from audited approved private providers in the mainland GBA, and building a Hong Kong-based “care service navigation network” with physical “navigation satellite stations” in GBA cities plus a public information platform. It notes that Hong Kong residents aged 65 or above living long-term in Guangdong rose from 70,900 to 111,600 over the past decade — an increase of nearly 60 per cent — and that a survey of 1,004 Hong Kong residents aged 36 or above interested in retiring in the GBA found 48 per cent had faced or expected difficulty using mainland specialist medical services.