Notably, the MPFA amended its Guidelines on Equities and Other Securities (Guidelines III.2) to expand eligible investments for Gold Exchange-Traded Funds (Gold ETFs) from a case-by-case approval basis to a categorical approval framework. Before the revision of Guidelines III.2, MPF funds could only invest in Gold ETFs which were individually approved by the MPFA and expressly named in such Guidelines. Only two such Gold ETFs had received approval. The new regulatory development provides asset managers with greater flexibility and offers access to a wider selection of Gold ETFs for the purpose of portfolio diversification. The categorical approval of eligible Gold ETFs will bring benefits to Hong Kong’s ETF ecosystem, as it is expected to stimulate new demand for Gold ETFs that were previously ineligible.