Hong Kong’s Exchange Fund posts weakest first-quarter gain since 2016 after losses from overseas stocks
Overseas stock investments lost HK$7.4 billion in the quarter, compared with a gain of HK$24.5 billion in the same period a year ago
Hong Kong’s Exchange Fund, the city’s reserves and asset war chest for defending its currency, has reported the worst first-quarter investment return since 2016, due to losses from overseas stock investments.
The fund has been unable to repeat last year’s record-breaking performance, with returns for the first three months revealed on Tuesday at HK$26.1 billion (US$3.32 billion), down 60 per cent from the HK$64.9 billion a year earlier. It is the lowest return since the first quarter of 2016, when the figure was HK$25.4 billion.
Overseas stock investments lost HK$7.4 billion in the quarter, compared with a gain of HK$24.5 billion 12 months ago.
During the first quarter the fund’s Hong Kong equity holdings also reported far lower gains at HK$1.7 billion, compared with a HK$14.3 billion gain at the same time last year.
The Dow Jones Industrial Average closed the first quarter of 2018 down about 2.5 per cent.