The following is issued on behalf of the Hong Kong Monetary Authority:

Hong Kong Exchange Fund Amounts to US$286.58 Billion

For more information, please contact:
Melissa Ng / David Hsieh at 212-752-3320
Daniel McAtee at 202-238-6360
Wing Yan Tong at 415-835-9315

December 31, 2009 - Total assets of the Hong Kong Exchange Fund amounted to HK$2,235.4 billion (US$286.58 billion) on November 30, 2009. This is HK$197.1 billion (US$25.26 billion) higher than at the end of October 2009, according to the Hong Kong Monetary Authority (HKMA).

Foreign currency assets increased by HK$196.3 billion (US$25.16 billion) and Hong Kong dollar assets increased by HK$0.8 billion (US$102.56 million).

The rise in foreign currency assets was due mainly to purchases of foreign currencies with Hong Kong dollars, an increase in unsettled purchases of securities and valuation gains on foreign currency investments. The rise in Hong Kong dollar assets was due mainly to valuation gains on Hong Kong equities.

The Currency Board Account shows that the Monetary Base at the end of November 2009 was HK$996.1 billion (US$127.7 billion), an increase of HK$104.7 billion (US$13.42 billion), or 11.7%, from the end of October 2009. The rise in the Monetary Base was due mainly to an inflow of funds into the Hong Kong dollar.

The Backing Assets increased by HK$131.5 billion (US$16.85 billion), or 14.0%, to HK$1,069.4 billion (US$137.1 billion). The increase was attributable mainly to the rise in the Monetary Base, revaluation gains and interest from investments, together with the transfer of assets from the Investment Portfolio to the Backing Portfolio in accordance with the arrangement approved by the Exchange Fund Advisory Committee. Reflecting this, the backing ratio increased from 105.21% at the end of October 2009 to 107.36% at the end of November 2009.