Hong Kong Exchange Fund Totals US$210.94 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

May 29, 2009 - Total assets of the Hong Kong Exchange Fund amounted to HK$1,645.4 billion (US$210.94 billion) on 30 April 2009. This is HK$41.5 billion (US$5.32 billion) higher than at the end of March 2009, according to the Hong Kong Monetary Authority (HKMA).

Foreign currency assets increased by HK$34.5 billion (US$4.42 billion) and Hong Kong dollar assets increased by HK$7 billion (US$897.43 million).

The rise in foreign currency assets was due mainly to purchases of foreign currencies with Hong Kong dollars and valuation gains on foreign currency investments. The rise in Hong Kong dollar assets was due mainly to an increase in the balance of the banking system and valuation gains on Hong Kong equities held by the Exchange Fund. These increases were partly offset by sales of Hong Kong dollars for foreign currencies.

The Currency Board Account shows that the Monetary Base at the end of April 2009 was HK$618.8 billion (US$79.33 billion), an increase of HK$48.8 billion (US$6.25 billion), or 8.6%, from the end of March 2009. The rise was due mainly to increases in the Aggregate Balance and Certificates of Indebtedness.

The Backing Assets increased by HK$46.3 billion (US$5.93 billion), or 7.5%, to HK$662.9 billion (US$84.98 billion). The increase was attributable mainly to an increase in the Aggregate Balance and the issuance of Certificates of Indebtedness in the Monetary Base together with interest from investments. These increases were partly offset by revaluation losses. Reflecting this, the backing ratio declined from 108.19% at the end of March 2009 to 107.13% at the end of April 2009.