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Financial and Monetary Affairs
Mandatory Provident Fund
Mandatory Provident Fund schemes had a net asset value (NAV) of $646 billion at the end of 2016 and an annualised rate of return of 2.8 per cent between December 2000, when the MPF System was launched, and December 2016.
Chart 9
HK$ Billion
800
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Total NAV of MPF Schemes
646
591
565
400
514
440
200
0
2012
2013
2014
2015
2016
Year
Commodity Trading
Hong Kong operates one of the most active physical gold markets in the world and is one of Asia's largest over-the-counter (OTC) gold trading centres. Spot gold can be traded through two closely related yet independent markets: the Chinese Gold and Silver Exchange Society and the Loco London gold market. The society provides trading of both tael and kilo bars4. Prices track closely those in the major gold markets in London, Zurich and New York.
In addition to operating Hong Kong's securities and derivatives markets, the HKEX owns the London Metal Exchange (LME), the world centre for industrial metals trading and price-risk management. More than three-quarters of global non-ferrous business is conducted on the LME and its prices are used as global benchmarks. The average daily volume for 2016 was 618,627 lots. The LME's in-house clearing house in London, LME Clear, supports the exchange's commodity business.
Enhancing Hong Kong's Competitiveness as International Financial Centre Hong Kong strengthens its competitiveness as an international financial centre through both enhancing the regulatory framework and promoting market development. The government works to consolidate the city's leading role as the Asia-Pacific region's asset management centre, advance financial cooperation with the Mainland, further develop offshore RMB business and enhance the functions of its funding platform. The government also encourages the use of technology to enhance operational efficiency and foster innovative services in the financial services industry. At the same time, it works closely with regulators and the industry to align with the international regulatory reform agenda to promote stability of the financial system, improve market quality and strengthen investor protection.
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Tael bars are of 99 per cent fineness and weighted in taels. One tael equals about 1.20337 troy ounces. Kilo bars are of 999.9 parts per thousand fineness and weighted in kilograms.
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