2022 RT Banner.gif

China Daily

News> Hong Kong> Content
Published: 09:34, July 30, 2022 | Updated: 17:50, July 30, 2022
HK Exchange Fund posts H1 investment loss of HK$144.2b
By Reuters
Published:09:34, July 30, 2022 Updated:17:50, July 30, 2022 By Reuters

HONG KONG - Hong Kong’s Exchange Fund, which is used to back the Hong Kong dollar, posted an investment loss of HK$144.2 billion ($18.37 billion) in the first six months of 2022 as the investment environment deteriorated, the Hong Kong Monetary Authority said on Friday.

Looking ahead into the second half of 2022, challenging global investment conditions will continue to linger, such as further tightening of monetary policies by central banks amid persistently high inflation, further deterioration of geopolitical risks, and intensifying risk of recession in major economies.

 Eddie Yue, HKMA chief executive

The fund’s second-quarter loss amounted to HK$95.4 billion after a loss of HK$48.8 billion in the January-March quarter, the authority said.

READ MORE: HKMA chief says Exchange Fund to ride out financial storm

“Looking ahead into the second half of 2022, challenging global investment conditions will continue to linger, such as further tightening of monetary policies by central banks amid persistently high inflation, further deterioration of geopolitical risks, and intensifying risk of recession in major economies,” said HKMA Chief Executive Eddie Yue Wai-man.

“This may lead to higher volatility in asset markets,” Yue said, adding that the investment environment would be tough for the rest of the year.

The HKMA is the main manager of the Exchange Fund, which is under the control of the financial secretary and invests in equities, bonds, foreign exchange and other securities and assets.

ALSO READ: HKMA raises interest rate by 75 basis points after Fed hike

On Saturday morning, the HKMA bought HK$1.923 billion ($245 million) from the market in New York trading hours to stop the local currency weakening and breaking its peg to the US dollar.

The Hong Kong dollar is pegged to a tight band of between 7.75 and 7.85 versus the US dollar.

The aggregate balance — the key gauge of cash in the banking system — will decrease to HK$153.579 billion on Aug 2, an HKMA spokeswoman said on Saturday.

Share this story

CHINA DAILY
HONG KONG NEWS
OPEN
Please click in the upper right corner to open it in your browser !