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

Hong Kong Exchange Fund Totals US$251.06 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

October 30, 2009 - Total assets of the Hong Kong Exchange Fund amounted to HK$1,958.3 billion (US$251.06 billion) on September 30, 2009. This is HK$38.7 billion (US$4.96 billion) higher than at the end of August 2009, according to the Hong Kong Monetary Authority (HKMA).

Foreign currency assets increased by HK$33.6 billion (US$4.3 billion) and Hong Kong dollar assets increased by HK$5.1 billion (US$653.84 million).

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

The rise in Hong Kong dollar assets was due mainly to valuation gains on Hong Kong equities, increases in bank borrowings and placements by Hong Kong government / statutory bodies. These increases were partly offset by fiscal drawdowns.

The Currency Board Account shows that the Monetary Base at the end of September 2009 was HK$803.6 billion (US$103.02 billion), an increase of HK$11.5 billion (US$1.47 billion), or 1.45%, from the end of August 2009. The rise in the Monetary Base was due mainly to an inflow of funds into the Hong Kong dollar and an increase in Certificates of Indebtedness.

The Backing Assets increased by HK$12.8 billion (US$1.64 billion), or 1.53%, to HK$850 billion (US$108.97 billion). The increase was attributable mainly to the rise in the Monetary Base together with revaluation gains and interest from investments. Reflecting this, the backing ratio rose from 105.69% at the end of August 2009 to 105.77% at the end of September 2009.