Hong Kong’s Exchange Fund posts fourth best annual returns in 2023 on bond and overseas stock market rallies: HKMA
- Exchange Fund gained HK$212.7 billion (US$27.27 billion) last year, a stunning turnaround from record losses of HK$205.4 billion in 2022
- ‘The market is full of uncertainties due to the geopolitical tension and also the timing of the interest-rate cuts,’ HKMA CEO Eddie Yue says
Hong Kong’s Exchange Fund, the war chest used to defend the local currency, rebounded strongly in 2023, as rallies in bond and overseas stock markets cancelled out a loss in domestic equities.
The fund’s investments gained HK$212.7 billion (US$27.27 billion), compared with a record loss of HK$205.4 billion in 2022, according to data released by the Hong Kong Monetary Authority (HKMA) on Friday. The earnings were the fourth best on record, after HK$264 billion in 2017, HK$262.2 billion in 2019 and HK$235.8 billion in 2020.
The profit in the October-to-December period stood at HK$106.8 billion, versus a gain of HK$73.4 billion in the year-earlier period.
This comes after a loss of HK$10.5 billion in the third quarter and gains of HK$108 billion and HK$8.4 billion in the first and second quarter, respectively.
“The market is full of uncertainties due to the geopolitical tension and also the timing of the interest-rate cuts,” Eddie Yue Wai-man, the HKMA CEO, said at a media briefing. “The Exchange Fund is aimed at defending the currency and financial stability. We have to invest in overseas assets and keep an eye on long-term investment.”