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

Exchange Fund at US$537.8 billion

For more information, please contact

Melissa Ng in New York City: (212) 752 3320
Wing Yan Tong in San Francisco: (415) 835 9315

Daniel McAtee in Washington, D.C.: (202) 238 6360

July 31, 2020 - The Hong Kong Monetary Authority announced today that the total assets of the Exchange Fund amounted to HK$4,195.3 billion (US$537.8 billion) as at June 30, 2020. This is HK$113.4 billion (US$14.5 billion) higher than that at the end of May 2020. Hong Kong dollar assets increased by HK$87.2 billion (US$11.1 billion) and foreign currency assets increased by HK$26.2 billion (US$3.3 billion).

The rise in Hong Kong dollar assets was mainly due to an increase in Exchange Fund Bills and Notes issued but not yet settled and the mark-to-market revaluation on Hong Kong equities. The rise in foreign currency assets was mainly due to the purchase of US dollars through the trigger of strong-side convertibility undertaking under the Currency Board arrangements and the mark-to-market revaluation of investments denominated in foreign currencies, which were partly offset by a decrease in unsettled purchase of securities.

The Currency Board Account shows that the Monetary Base at the end of June 2020 was HK$1,748.9 billion (US$224.2 billion), increased by HK$39.3 billion (US$5 billion), or 2.3 per cent, from the end of May 2020. The rise was mainly due to the sale of HK dollars under the Currency Board arrangements.

The amount of Backing Assets increased by HK$38.9 billion (US$4.9 billion), or 2.0 per cent, to HK$1,953.1 billion (US$250.3 billion). The increase was mainly attributable to the purchase of US dollars under the Currency Board arrangements. The backing ratio decreased from 111.97 per cent at the end of May 2020 to 111.68 per cent at the end of June 2020.