The Hong Kong Monetary Authority (HKMA) recorded a robust investment income of HK$274 billion for the Exchange Fund in the first three quarters of 2025, driven by gains in bonds, equities, and currency translation.
Investment Performance Overview
The Hong Kong Monetary Authority (HKMA) has reported a substantial investment income of HK$274 billion for the Exchange Fund by the end of September 2025. This announcement was made on 13 November 2025. The income is attributed to gains in bonds, equities, and favorable currency translation effects, as detailed by the HKMA.
Key Investment Gains
The Exchange Fund's investment income was largely driven by HK$112.6 billion in bond gains, HK$40.1 billion from Hong Kong equities, and HK$59.5 billion from other equities. Additionally, a positive currency translation effect of HK$30.2 billion on non-Hong Kong dollar assets contributed significantly to the overall performance. Other investments also realized gains amounting to HK$31.6 billion.
Financial Position and Strategy
The Exchange Fund's total assets reached HK$4,152.2 billion at the end of September 2025, marking an increase of HK$71.2 billion from the previous year. The accumulated surplus stood at HK$916.3 billion. HKMA Chief Executive Eddie Yue highlighted that central bank monetary policies, geopolitical conditions, and the AI industry's growth were key factors positively influencing the investment environment. The Hong Kong stock market saw a 12% rise in the third quarter, buoyed by capital inflows.
Market Outlook
Despite the positive results, Eddie Yue emphasized the continuing uncertainty in the investment landscape for the remainder of 2025. The potential impacts of U.S. Federal Reserve rate cuts, economic outlook concerns, and geopolitical tensions remain unpredictable. However, the HKMA plans to maintain a strategy focused on capital preservation while seeking long-term growth.
Future Plans
The HKMA intends to manage the Exchange Fund with prudence and flexibility, implementing defensive measures and maintaining high liquidity. Investment diversification will be prioritized to achieve higher long-term returns, ensuring the Fund's role in maintaining Hong Kong's monetary and financial stability.
For more detailed financial data and the Exchange Fund's balance sheet, visit the official [Hong Kong Monetary Authority](https://www.hkma.gov.hk/eng/news-and-media/press-releases/2025/11/20251113-4/) website.Image source: Shutterstock
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