Why Did the Industry Want High-Risk Funds in MPF?

What Was the Dispute?

The MPFA was consulting on which products should join MPF, but regulators were holding back high-risk funds such as emerging-market offerings — and the industry objected. Trustees were unhappy that volatile funds were shut out, fearing the current tilt toward mature US, European and Japanese markets could plant an investment time bomb.

What Was the Industry’s Case?

Hong Kong Trustees’ Association chairwoman Lau Ka-shi argued Hongkongers were living longer so MPF would not stretch far enough, while over-conservative portfolios could not beat inflation. She backed new categories — A-shares, emerging markets, healthcare, single-market funds — with proper investor education.

What Was Wrong With Approvals?

Lau said regulators seemed to apply a different yardstick from past practice, slowing approvals. The investment funds association’s Wong Ka-yiu and Sally Wong added that judging only by past performance in the rear-view mirror, or blocking choice over volatility fears, went against open market competition.
More fund types mean choice matters more — compare MPF funds by risk level and performance to allocate within your tolerance.