To support the Northern Metropolis and other infrastructure projects, the Chief Executive in Council has, in accordance with the Exchange Fund Ordinance, approved the transfer of $150 billion from the Exchange Fund to the Government’s Capital Works Reserve Fund (CWRF).

The transfer will be made through a designated account under The Financial Secretary Incorporated, with $75 billion per annum being credited to CWRF’s account in each of 2026-27 and 2027-28.

The Government will implement the relevant arrangement after the passage of the Appropriation Bill 2026 by the Legislative Council.

The Exchange Fund Ordinance sets out the mechanism that empowers the Financial Secretary (FS) to make transfers from the Exchange Fund, with the principal condition that the FS is satisfied that any transfer will not adversely affect the Exchange Fund’s main function of maintaining the stability of the Hong Kong dollar’s exchange value, and the stability and integrity of the city’s monetary and financial systems.

The Exchange Fund achieved a record breaking performance last year, delivering investment income of $330 billion. As at the end of 2025, the total value of assets under the Exchange Fund exceeded $4.1 trillion, enough to maintain monetary and financial stability.

As such, on the premise that the Exchange Fund’s main functions will not be compromised, the FS proposed, in the 2026-27 Budget, transferring $150 billion from the Exchange Fund to the CWRF over two years.

The Government emphasised that the transfer is an exceptional arrangement and not a recurring measure.

It added that the funds will be used for infrastructure projects that require long-term investment, with a view to accelerating and increasing development capacity, rather than as part of the Government’s operating expenditure.