Hong Kong’s Exchange Fund reports US$1.7 billion third-quarter loss as Beijing’s big tech crackdown batters stock market
- The war chest used to defend the Hong Kong dollar notched up its worst loss since early 2020 as the Hang Seng Index crashed by about 15 per cent
- Its performance remains solid on a nine-month basis, however, with cumulative gains of HK$126.5 billion, up 40 per cent from a year earlier
The loss in the July-to-September period compares with a gain of HK$81.2 billion a year earlier. The last time the fund suffered a loss was in the first quarter of 2020 when it dropped HK$112 billion, the worst result in the 17 years it has been reporting its quarterly performance.
The Exchange Fund’s investment income during the quarter was dented by the valuation loss of its Hong Kong stock portfolio at HK$26.3 billion, a far deeper loss than the HK$300 million it shed a year earlier.
The disappointing results followed two strong quarters in which the fund reported gains of HK$51.3 billion and HK$51.4 billion. Lee said the Exchange Fund performance remained solid on a nine-month basis, its cumulative income totalling HK$126.5 billion, 40 per cent higher than a year earlier.