Last month's stock market rally added $10.72 billion paper profits to Exchange

Last month's stock market rally added $10.72 billion in paper profits to the Exchange Fund's Hong Kong dollar asset portfolio, according to the Hong Kong Monetary Authority.

The gain was offset by a $4.96 billion equivalent fall in foreign currency assets due to a reversal in note-issuing activities after the Lunar New Year.

The net effect was a $5.76 billion gain in the Exchange Fund's total assets to $927.08 billion.

An authority spokesman said the figures should be interpreted with care because 'monthly figures are likely to fluctuate due to short-term market movements and seasonal factors'.

The monetary base by the end of last month was $199.43 billion, down $3.6 billion from February.