Hong Kong Exchange Fund Totals US$261.32 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

November 30, 2009 - Total assets of the Hong Kong Exchange Fund amounted to HK$2,038.3 billion (US$261.32 billion) on October 31, 2009. This is HK$80 billion (US$10.25 billion) higher than at the end of September 2009, according to the Hong Kong Monetary Authority (HKMA).

Foreign currency assets increased by HK$75.3 billion (US$9.65 billion) and Hong Kong dollar assets increased by HK$4.7 billion (US$602.56 million).

The rise in foreign currency assets was due mainly to purchases of foreign currencies with Hong Kong dollars, which was partly offset by a decrease in securities purchased but settled in the following month.

The rise in Hong Kong dollar assets was due mainly to valuation gain on Hong Kong equities.

The Currency Board Account shows that the Monetary Base at the end of October 2009 was HK$891.4 billion (US$114.28 billion), an increase of HK$87.8 billion (US$11.25 billion), or 10.9%, from the end of September 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$87.9 billion (US$11.26 billion), or 10.3%, to HK$937.9 billion (US$120.24 billion). The increase was attributable mainly to the rise in the Monetary Base together with interest from investments. These increases were partly offset by revaluation losses. At the end of October 2009, the backing ratio stood at 105.21%, compared with 105.77% at the end of September 2009.