Hong Kong’s Exchange Fund has achieved its most notable nine-month return since the Hong Kong Monetary Authority (HKMA) began issuing data in 2003, thanks to a bullish stock market that significantly enhanced the financial resources available to support the local currency.
Despite experiencing a decrease in gains for the third quarter, the fund reported remarkable cumulative earnings of HK$274 billion (approximately US$35 billion) for the first nine months of the year, marking a 14.6 percent increase. This information was disclosed by the HKMA in a recent statement.
The substantial growth in earnings can be attributed to a surge in capital inflows into the Hong Kong stock exchange alongside a wave of new listings. As a result, Hong Kong has reclaimed its position as the world’s largest initial public offering (IPO) market for the first time since 2019. Analysts maintain a positive outlook for the Hong Kong stock market for the remainder of the year, suggesting that these trends may further enhance the fund’s overall performance.
This nine-month return not only eclipses last year’s record of HK$239.1 billion but also exceeds the previous full-year record of HK$264 billion set in 2017. Additionally, the impressive returns have increased the fund’s contributions to the government’s fiscal reserves, rising to HK$12.3 billion in the first nine months, up from HK$10 billion during the same period last year.
As of the end of September, the total assets of the Exchange Fund have climbed to HK$4.152 trillion, representing a 1.7 percent increase from HK$4.082 trillion at the end of the previous year. This robust financial performance indicates a thriving local economy and positions Hong Kong well for continued financial stability and growth.