HPBT vs OTM
The Sierra Matchking is listed by Sierra as being a Hollow Point Boat Tail (HPBT) round. HOWEVER, it is not the same kind of "hollow point" as you find on hunting bullets. The small hollow at the round's tip is designed for better air flow, not for expansion. It is incredibly hard to get a bullets tip to be perfectly pointed, and prefectly centered. Many of the different bullet companys have realized that they can save same effort with an "open tip." Instead of using machining to get the perfect point, they use air. The concept is that the open tip creates a "burble" of air, similar to what happens in the space right behind a parachutist in freefall. This burble will be perfectly rounded, and cut through the air more reliably than if the company tried to make a pointed tip.
This is also why it is legal for the Canadian Forces to use Federal and Black Hills match ammo loaded with Sierra matchkings, because technically, the round is NOT a hollow point, it is Open Tip Match (OTM). It is designed for better accuracy, not to "increase suffering," and as such is legal according to the Hague convention. (BTW, only snipers use the good stuff)
It should also be noted that the tip of the round has less effect on accuracy than the base of the round (I mean the projectile of course). Unless the balance of the round is way off centre, even a bullet with a mangled point will still fly fairly accurately. A point for consideration for reloaders, or those getting into reloading, is that any damage to the bottom of a bullet will have the same (negative) effect on the bullet's flight as if that damage was mirrored on the muzzle crown. Shooting factory ammo, that's beyond your control, but it gives you another excuse for why you miss!
Obviously, hunting bullets are designed to mix penetration & expansion, with more of one or the other depending on the bullet. If you are hunting coyotes/wolves with Matchkings, your goal should be to hit the head, not the vitals. If you can't do that, pass on the shot, or you can expect results similar to those in the stories.
(Fur value goes down if you put a hole in behind the ears anyways.

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I would (and do) use .308cal 168gr Sierra Matchkings on groundhogs. I generally don't shoot at ranges past 200 metres, so even a 1 MOA rifle is more than accurate enough to dispose of the little buggers. I aim at the head, and of course I miss some shots, but that's part of the challenge. If I was just out there to thin out their numbers, I would aim for the chest. Even on the biggest ground hogs, a marginal hit with a .308 isn't going to leave the animal suffering for long.

Obviously, shooting a .308 at groundhogs means that I have to be very conscious of the backstop, but this should go without saying, regardless of the cartridge you're using. Also it means having a look at local laws. A lot of WMUs in Ontario prohibit the use of rifles above .25 cal for hunting small game, and in Ontario wolves & coyotes fall under small game.
As far as the legality of bullet type, you're good to go. There are no laws in Ontario (that I've ever read about) saying that FMJs, HPs, or any other type of ammo is legal or not. Just the local ones regarding calibre that I already mentioned.
Hope this helps.
Cheers.
Tim