Exchange Fund investment income hits $17.1b

May 03, 2013

The Exchange Fund recorded an investment income of $17.1 billion in the first quarter this year, $13.2 billion less than the previous quarter.
 
Monetary Authority Chief Executive Norman Chan told the Legislative Council today the fall was mainly due to losses recorded in Hong Kong equities and foreign exchange, of $1.4 billion and $9.8 billion.
 
The net investment income, after deducting interests and other expenses, was $16.2 billion, and the increase in the Exchange Fund accumulated surplus was $4.2 billion.
 
Payment to fiscal reserves amounted to $9.3 billion.
 
Other equities and bonds gained $24.9 billion and $2.8 billion, while other investments brought income of $600 million.
 
Mr Chan said property transactions have dropped significantly since the Government introduced measures to cool the property market in February. Though there are signs of lowering prices, he said it is hard to say if the property market has started to change for the worse.
 
He warned that external financial markets are still uncertain, such as in Japan and the US. Hong Kong must prepare for the risks posed by a possible influx or outflow of capital as well as any reversal in property prices and interest rates.