Hong Kong Exchange Fund posts Q3 investment loss of $1.70 billion -HKMA

Hong Kong’s Exchange Fund, which backs the local dollar, posted a third-quarter investment loss of HK$13.2 billion ($1.70 billion), its first after five consecutive quarters of gains, the Hong Kong Monetary Authority said on Monday.FILE PHOTO: Illustration photo of a Hong Kong dollar noteHong Kong dollar note

That compared with an HK$81.2 billion investment gain in the same period a year earlier.

The Exchange Fund recorded investment income of HK$126.5 billion in January-September period this year.

Among the investment income, the loss from Hong Kong equities was at HK$26.3 billion in the third quarter after three straight quarters of gains, and amounted to a HK$13.8 billion loss for the first nine months of 2021.

HKMA said Hong Kong’s financial system is robust and the banking system has sufficient capital and liquidity. It also said it would ensure the stability of the local currency through the linked exchange rate system.

The HKMA is the key manager of the Exchange Fund, which is under the control of the financial secretary and invests in equities, bonds, foreign exchange and other securities and assets.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s