Hong Kong’s war chest swells as market rally boosts nine-month income to record HK$189.8 billion
Exchange Fund’s nine-month investment income jumps nearly threefold from 2016
Hong Kong’s Exchange Fund, the city’s reserves and cash arsenal for defending the currency, posted a record investment income of HK$189.8 billion in the first three quarters of this year, boosted by a rally in global stock markets, according to Hong Kong Monetary Authority on Monday.
The figure has increased nearly threefold from the full-year investment gains of 2016, which stood at HK$68.1 billion.
“The results of the first three quarters were strongly backed by the upbeat investor sentiment in the market,” said Norman Chan Tak-lam, chief executive officer of the HKMA, in the Legislative Council.
For the first three quarters Hong Kong equities contributed HK$42.2 billion and other equities achieved investment returns of HK$58.9 billion.
Returns from bonds, foreign exchange and other investments were HK$27.2 billion, HK$44 billion, and HK$17.5 billion respectively.
The Hang Seng Index has rallied more than 28 per cent this year, one of the best performers in the world markets, according to data from Bloomberg.
In the third quarter, the Exchange Fund had an investment income of HK$53.6 billion, the lowest quarterly figure this year, but still up 14 per cent from the same period a year ago.