Hong Kong Exchange Fund recorded an investment income of 274 billion Hong Kong dollars for the first three quarters of 2025.

On November 13, the Hong Kong Monetary Authority (HKMA) announced the unaudited financial position of the Exchange Fund as of the end of September 2025. The Exchange Fund recorded investment income of HK$274 billion in the first three quarters of 2025, with the main components including: bond investment income of HK$112.6 billion; Hong Kong stock investment income of HK$40.1 billion; other stock investment income of HK$59.5 billion; foreign exchange valuation gains on non-Hong Kong dollar assets of HK$30.2 billion; and other investment income of HK$31.6 billion. In the third quarter of 2025, the Exchange Fund paid interest rates of 4.4% to the fiscal reserves, the Hong Kong Special Administrative Region Government funds, and statutory organizations. The related expenses for the first three quarters were HK$12.3 billion and HK$11.8 billion, respectively. As of the end of September 2025, the total assets of the Exchange Fund were HK$4,152.2 billion, an increase of HK$71.2 billion from the end of 2024, with cumulative surplus of HK$916.3 billion. Eddie Yue, Chief Executive of the HKMA, stated that as the third quarter began, central bank monetary policies, geopolitical situations, and the AI boom all contributed to a favorable investment environment. Major asset classes globally performed well, with stock market indices hitting new highs. Hong Kong stocks benefited from capital inflows, rising by approximately 12% in the third quarter. Despite the Federal Reserve cutting interest rates again in September, US dollar bond yields remained at relatively high levels, providing the Exchange Fund's bond portfolio with decent interest income. However, the US dollar strengthened against other major currencies in the third quarter, leading to some asset valuation adjustments for the Exchange Fund. Overall, the Exchange Fund achieved commendable investment income in the first nine months of 2025, with positive returns across major asset classes. Looking ahead to the rest of 2025, the investment environment remains highly uncertain. While further rate cuts by the Federal Reserve could benefit the investment atmosphere, market attention will continue to focus on the economic outlook in the United States. Additionally, the fluctuating economic and trade policies of the US government, trade tensions, and geopolitical situations continue to pose unpredictable impacts on financial markets. In light of the complex and ever-changing investment environment, the HKMA will continue to adhere to the principles of capital preservation and long-term value growth, prudently and flexibly managing the Exchange Fund. Appropriate defensive measures will be taken, high liquidity will be maintained, and diversification of investments will continue, with the aim of enhancing the long-term investment returns of the Exchange Fund and ensuring the effective maintenance of monetary and financial stability in Hong Kong.