Hong Kong’s Exchange Fund reports US$13 billion gain in second quarter, but outlook remains uncertain
- Second-quarter earnings the best in over a year, thanks to the global stock market rally
- The second half of the year remains challenging, HKMA CEO Eddie Yue says
The performance helped the Exchange Fund narrow its losses in the first half to HK$10.6 billion.
The HKMA’s returns were helped by stock market rallies across the world. Overseas equity investments rose HK$67.7 billion in the second quarter, compared to a heavy loss of HK$83.1 billion in the first quarter. The fund made HK$8.8 billion from Hong Kong equities, against a loss of HK$28.4 billion in the first quarter.
“Looking ahead, the investment environment in the second half of the year remains challenging,” he said. “While many governments have begun to relax their anti-epidemic measures, the global economy is still very fragile, and the timing and speed of recovery remain highly uncertain. Geopolitical developments and the risk of resurgence of Covid-19 also add to uncertainties surrounding the markets.”