Exchange Fund rounds to HK$41.2b gain in third quarter
Market turnaround and gains in currencies and bonds lead third-quarter reversal from HK$41.7 billion loss in the same period last year
The Exchange Fund turned around earlier losses to return HK$41.2 billion in the third quarter, thanks to a rebound in the stock market and gains from currencies and bonds.
The third-quarter profit compared to a loss of HK$5.6 billion in the second quarter and a loss of HK$41.7 billion in last year's third quarter, said the Hong Kong Monetary Authority (HKMA).
Investment income in this year's first nine months was HK$80.1 billion, compared with HK$5 billion in the same period last year.
The fund, which is mandated to support the Hong Kong dollar's fixed exchange rate to the US dollar, made HK$9.3 billion from Hong Kong stocks, HK$14.4 billion from other stocks, HK$6.6 billion from currencies and HK$10.8 billion from bonds.
Globally, stocks performed better in the third quarter as investor sentiment improved after the European Central Bank said in September that it was prepared to make "unlimited purchases" in euro members' bond markets. The move triggered a rally in shares globally.
The Hang Seng Index gained 7.2 per cent in the third quarter, compared with a 5.4 per cent decline in the second.