Hong Kong’s Exchange Fund gains record US$35 billion in first 9 months amid market rally
The nine-month return surpasses last year’s record of HK$239.1 billion and exceeds the full-year high of HK$264 billion reached in 2017
Hong Kong’s Exchange Fund posted its biggest nine-month return since the Hong Kong Monetary Authority (HKMA) began releasing the data in 2003, as a bull run in the stock market helped boost the financial war chest used to defend the local currency.
The Exchange Fund reported a decline in its third-quarter gains, but cumulative earnings for the first nine months of the year jumped 14.6 per cent to HK$274 billion (US$35 billion), the HKMA, which manages the fund, said in a statement on Thursday.
The strong earnings were the result of capital inflows into the Hong Kong stock exchange as well as new listings, as the city claimed the title of the world’s largest initial public offering (IPO) market for the first time since 2019. Analysts believe the stock market will remain positive for the rest of this year, which may boost the fund’s full-year result.
The nine-month return surpassed last year’s record of HK$239.1 billion. The HK$274 billion is already higher than the full-year record of HK$264 billion reported in 2017.
They also pushed the fund’s total assets to HK$4.152 trillion as at the end of September, up 1.7 per cent from HK$4.082 trillion at the end of last year.