Hong Kong recently approved a legislative amendment clearing the way for the city to invest its residents’ pension fund in debt securities issued or guaranteed by Beijing. The move comes when foreign investors are ditching Chinese debt at a record pace.
Mandatory Provident Fund (MPF) is a compulsory pension scheme designed to provide retirement savings for working Hong Kong citizens.
On June 1, Hong Kong’s Legislative Council approved the Mandatory Provident Fund Schemes Amendment Regulation 2022. The amendments would facilitate MPF investment in bonds issued or unconditionally guaranteed by the Central People’s Government (CPG), People’s Bank of China (PBOC), and three Mainland policy banks….