Hong Kong Exchange Fund Totals US$193.48 Billion

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Melissa Ng / David Hsieh at 212-752-3320
Daniel McAtee at 202-238-6360
Wing Yan Tong at 415-835-9315

March 27, 2009 - Total assets of the Hong Kong Exchange Fund amounted to HK$1,509.2 billion (US$193.48 billion) on February 28, 2009. This is HK$41.1 billion (US$5.26 billion) lower than at the end of January 2009, according to the Hong Kong Monetary Authority.

Foreign currency assets decreased by HK$32.9 billion (US$4.21 billion) and Hong Kong dollar assets decreased by HK$8.2 billion (US$1.05 billion).

The decline in foreign currency assets was due mainly to valuation losses on foreign currency investments and redemptions of Certificates of Indebtedness. The decline in Hong Kong dollar assets was due mainly to fiscal drawdowns and valuation losses on Hong Kong equities held by the Exchange Fund.

The Currency Board Account shows that the Monetary Base at the end of February 2009 was HK$529.6 billion (US$67.89 billion), a decrease of HK$11.9 billion (US$1.52 billion), or 2.2%, from the end of January 2009. The decline was due mainly to decreases in the Certificates of Indebtedness and the market value of Exchange Fund Bills and Notes outstanding.

The Backing Assets decreased by HK$12.4 billion (US$1.58 billion), or 2.1%, to HK$573 billion (US$73.46 billion). The decrease was attributable mainly to the redemption of Certificates of Indebtedness in the Monetary Base and revaluation losses, which were partly offset by interest from investments. At the end of February 2009, the backing ratio stood at 108.19%, compared with 108.11% at the end of January 2009.