A Study On Investment Strategies Of Hong Kong Mandatory Provident Fund

Hong Kong Special Administration Region is a small island but a unique place. Although, it lacks of natural resources and a small island, it has still developed to a prosperous and cosmopolitan city. However, behind-the scenes, the HKSAR is facing to the problem of rapid ageing population. Prior to the implementation of the Mandatory Provident Fund (MPF) system by HKSAR, there was only a few individual international firms which would have provided their staff with retirement plan but it was obvious that it's never suffice the demand of the entire ageing force, It was not until the launch of MPF system, in December 2000, the coverage of the plan extended to the entire Hong Kong population and simultaneously, it was direct to reduce Government burden in retirement protection expenses for the ageing population in future.As the MPF system was in operation till now; we carry out a study in the performance of MPF system in the past five years through this article and together with the overseas experience or the research on the performance of different systems in different countries. Moreover, we care the views and comments from the management's and employee's points of view. From the management points of view, they will consider how to comply with the legislation in Hong Kong and how MPF influence its cost of operation? Also, how they choose the best providers in order to ease its operation cost? On the other hand, from the employee's point of view, whether MPF is sufficient enough to safeguard their retirement? Which factors they need to consider? Actually, we hope to draw their attentions how they select the best performance provided from these providers for our senior management perusal and the best MPF component for employee accordingly. As a result, we hope to propose another investment tools for the public in order to safeguard their retirement.