Hong Kong Monetary Authority deputy chief executive Andrew Sheng Len-tao says the authority is monitoring the US dollar's rise against the yen to decide whether to increase US dollar assets in the Exchange Fund. He said the authority had adopted a defensive investment strategy for the Exchange Fund, and US dollar assets had increased to 88 per cent of total assets of the fund last year. The authority would wait to see the market movement before further increasing the proportion of US dollar assets. Mr Sheng said the authority was still discussing with the International Monetary Fund the possibility of the IMF setting up an office in Hong Kong.
