What Did Bank Consortium Trust Say About the Price War?

What did CEO Lau Ka-shi say in February 2011?

Bank Consortium Trust CEO Lau Ka-shi expected MPF providers to keep competing on price, but with different strategies: bigger asset bases allowed deeper cuts, while some firms cut only a few funds or for new members; she hoped it wouldn’t turn vicious. She backed raising the contribution ceiling from HK$20,000 to HK$30,000 but expected pushback over rising company costs.

What was the product direction?

The MPFA approved funds cautiously — high-risk emerging-market funds struggled for approval; the firm would focus on index funds and low-risk Asian bond funds. Renminbi MPF funds were unlikely soon since local firms pay in HKD.

What’s the lesson for workers?

A price war is workers’ opportunity — see who cut deepest without sacrificing performance at MPF fund comparison.