Hong Kong Pushes ETF Access for Chinese Insurers and Pension Funds

Hong Kong is rolling out measures to expand its ETF and REIT markets as it seeks to attract more global assets and investment products. The government plans to promote ETF investment by mainland Chinese insurers through mutual market access, encourage ETF cross-listings between Hong Kong and Southeast Asian exchanges, and allow greater ETF exposure within the HK$1.5 trillion (US$192 billion) Mandatory Provident Fund. The retirement system currently permits ETF allocations of up to 10%, though a new ceiling was not disclosed. Hong Kong also plans REIT reforms including stamp-duty relief, new rules for privatisations and restructurings, and streamlined approvals for foreign REIT dual listings.