Hong Kong Exchange Fund posts third quarter investment loss of $ 1.70 billion -HKMA
HONG KONG, Oct. 18 (Reuters) – The Hong Kong Foreign Exchange Fund, which backs the local dollar, recorded an investment loss of HK $ 13.2 billion ($ 1.70 billion) in the third quarter, its first after five consecutive quarters of gains, according to the Hong Kong Monetary Authority said Monday.
This compares to an investment gain of HK $ 81.2 billion over the same period a year earlier.
The Foreign Exchange Fund recorded investment income of HK $ 126.5 billion during the January-September period of this year.
Among investment income, the loss on Hong Kong stocks was HK $ 26.3 billion in the third quarter after three consecutive quarters of gains, and amounted to a loss of HK $ 13.8 billion for the first nine months of 2021.
The HKMA said Hong Kong’s financial system is strong and the banking system has sufficient capital and liquidity. He also said he would ensure the stability of the local currency through the linked exchange rate system.
The HKMA is the primary manager of the exchange fund, which is under the control of the financial secretary and invests in stocks, bonds, currencies and other securities and assets.
($ 1 = 7.7780 Hong Kong dollars)
Reporting by Twinnie Siu and Donny Kwok; Editing by Himani Sarkar and Sam Holmes
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