The Hong Kong government has added the Shanghai and Shenzhen stock markets to a list of approved exchanges in which the city’s pension scheme, the Mandatory Provident Fund MPF, can invest, effectively opening up China’s bourses to local fund managers.
The new regulation will allow fund managers to take advantage of China’s booming tech-heavy stock markets, which have bounced back rapidly from Covid.
At stake is the more than HK$1 trillion $129 billion in MPF funds, which until the rule change could reportedly be invested in 42 overseas exchanges, including the New York Stock Exchange and the London Stock Exchange.
The decision,...
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