Unity Foundation urges pension link-up; Hong Kong MPFA says routes exist

The number of mainland personal pension accounts rose from 72.8 million to 150 million in a year, but, as the report cites, about 70% of them are idle. The Hong Kong Unity Foundation has proposed a "Personal Pension Connect" scheme that would let mainland retirement money invest in products approved under Hong Kong's Mandatory Provident Fund (MPF).

etnet reported the proposal on 9 October 2026, alongside a response from the Mandatory Provident Fund Schemes Authority (MPFA). The MPFA said it supports any policy proposal that improves the interests of MPF scheme members and supports the country's development of a multi-pillar pension system, but noted that personal pensions can already be invested in suitable Hong Kong financial products.

All of the above is a proposal. The report does not say whether the government or any regulator has adopted it, and no timetable has been given.

150 million accounts, seven in ten idle

The report describes the challenge facing mainland personal pensions as "hot on opening accounts, cold on investing". As cited in the report, accounts grew from 72.8 million in 2024 to 150 million in 2025; about 70% are idle, 20% receive irregular contributions and 10% receive regular contributions.

On funds, the annual contribution cap is RMB 12,000, the average holding per account is RMB 2,900, and total holdings are estimated at more than RMB 145 billion, all held by the roughly 30% of accounts that are not idle. The report does not say where these figures originally come from.

A two-step proposal: widen quotas first, then open a connect scheme

The report proposes positioning Hong Kong as a pension management centre for the Greater Bay Area, in two steps, short term and long term:

• Short term: improve existing investment channels, for example by enlarging the Qualified Domestic Institutional Investor (QDII) quota or setting up a dedicated quota for personal pension investment.
• Long term: develop a "Personal Pension Connect" scheme, piloted first in the Greater Bay Area at retail level, allowing individual or institutional investors to invest in MPF-approved products in Hong Kong.

For the pilot, the report suggests launching a "Southbound Connect" first, letting mainland retirement money invest in MPF-approved products in Hong Kong, and expects market demand in this direction to be greater. Once it matures, a "Northbound Connect" would follow.

How regulation could be divided

Under the proposal, individual investors would be expected to be supervised by the MPFA, while institutions or funds investing in "whitelisted" products would follow existing regimes such as QDII. Funds would be managed on a closed-loop basis.

MPFA: current rules already provide a route

The MPFA said current rules allow pension target funds as an investment option for personal pensions, and that these funds can invest in MPF Approved Pooled Investment Funds (APIFs) that may be offered on the mainland under the Mainland-Hong Kong Mutual Recognition of Funds arrangement. The report does not give the number or size of such funds.

The MPFA also said that, when considering more channels for personal pensions to invest in Hong Kong financial products, it must take account of the different effects on retirement protection policy in the mainland and Hong Kong, and whether they fit policy objectives.

The difference between the two is this: under the current arrangement, investment goes through pension target funds that invest in the relevant MPF Approved Pooled Investment Funds; the proposal would, under a Greater Bay Area pilot, allow individual or institutional investors to invest in MPF-approved products.

Analysis: what it means for recruiting teams

This is still a proposal, not policy. As reported, it has not been put into effect, so it cannot at this stage be presented to clients as a new arrangement.

One point worth noting is the report's idea for dividing regulation: individual investors under the MPFA, institutions under the QDII regime. The report gives no further detail.

The MPFA's response points out that current channels already exist, and says it must take account of policy effects when considering more channels. When talking to clients about "connect" schemes, the safer course is to keep the current arrangements and the proposal clearly apart, and not to describe a proposal as policy already in force.

Compiled by the F50 Editorial Team from public sources, for general reference only and not professional advice. Details are correct as of the publication date and may change.