Hong Kong’s Exchange Fund posts US$8.7 billion gain amid stock market rally
Exchange Fund benefits from Hong Kong stock market rally; Hang Seng Index rises 15 per cent in the first quarter
Hong Kong’s Exchange Fund, the war chest used to defend the local currency, reported an investment gain of HK$67.2 billion (US$8.7 billion) in the first quarter, thanks to stock market rallies in the city and global bond prices.
The Exchange Fund, however, was expected to face a number of uncertainties for the rest of the year, after the US’ tariff policies triggered market turmoil in April.
“The US tariff policy has created a lot of market uncertainties since early April, but we continue to see capital inflow to Hong Kong stock markets for the many upcoming new listings,” said the de facto central bank’s chief executive, Eddie Yue Wai-man, during his quarterly meeting with lawmakers on Tuesday.
Several lawmakers urged the Exchange Fund to cut down on its US dollar assets amid the current geopolitical tensions.