Exchange Fund sees $43.8b inv't income

May 21, 2012

The Exchange Fund achieved an investment income of $43.8 billion in the first quarter this year, despite the intensified eurozone debt crisis, Monetary Authority Chief Executive Norman Chan said today.
 
The main components of the income were a total return from a valuation gain net of dividends on Hong Kong equities amounting to $13.6 billion, a valuation gain net of dividends on other equities amounting to $28.2 billion, an exchange valuation gain of $4.1billion, a valuation gain on other investments amounting to $800 million and a loss from bonds of $2.9 billion.
 
After deducting interest and other expenses, net investment income was $42.9 billion.
 
Mr Chan warned the escalating crisis in Europe and the lack of growth momentum in the Mainland and US economies pose risks on global financial markets.
 
On the Hong Kong property market, Mr Chan said he cannot predict whether prices will rise or decline, adding the authority will monitor the market closely and introduce appropriate measures to maintain banking stability when necessary.