Hong Kong’s Exchange Fund, the war chest used to defend the local currency, reported an investment gain of HK$67.2 billion (US$8.7 billion) in the first quarter, thanks to stock market rallies in the city and global bond prices.
The Exchange Fund, however, was expected to face a number of uncertainties for the rest of the year, after the US’ tariff policies triggered market turmoil in April.
“The US tariff policy has created a lot of market uncertainties since early April, but we continue to see capital inflow to Hong Kong stock markets for the many upcoming new listings,” said the de facto central bank’s chief executive, Eddie Yue Wai-man, during his quarterly meeting with lawmakers on Tuesday.
The fund’s total assets stood at HK$3.98 trillion at the end of March, a HK$46 billion decrease from the end of last year.
In the first quarter, the fund gained HK$16.4 billion from its Hong Kong stock investments, reflecting the Hang Seng Index’s jump and a rise of 21 per cent for the Hang Seng Tech Index.
