Hong Kong Monetary Authority: will continue to adhere to the principle of "capital preservation first, long-term appreciation", and prudently and flexibly manage foreign exchange funds.

Eddie Yue, Chief Executive of the Hong Kong Monetary Authority, stated that in the face of a complex and rapidly changing investment environment, the Hong Kong Monetary Authority will continue to adhere to the principle of "capital preservation first, long-term value enhancement", managing foreign exchange funds cautiously and flexibly. The Hong Kong Monetary Authority will make appropriate defensive deployment, maintain high liquidity, and continue to diversify investments, aiming to improve the long-term investment return of foreign exchange funds and ensure their effective maintenance of Hong Kong's monetary and financial stability. He mentioned that in the third quarter, factors such as central bank monetary policies, geopolitical situations, and the hype around artificial intelligence all benefit the investment environment. Global major asset classes have performed relatively well, with major stock market indices hitting new highs during the quarter. Hong Kong stocks have benefited from capital inflows, rising by about 12% in the third quarter. Regarding the bond market, although the Federal Reserve cut interest rates again in September, US dollar bond yields remained at relatively high levels, providing decent interest income for the bond portfolios held by foreign exchange funds. However, the US dollar strengthened against other major currencies in the third quarter, resulting in some asset valuation adjustments for foreign exchange funds. Overall, foreign exchange funds recorded decent investment income in the first nine months of 2025, with positive returns in all major asset classes. Eddie Yue continued to say that looking ahead to the remaining time of 2025, the investment environment remains highly uncertain. While expectations of further Federal Reserve rate cuts may favor the investment atmosphere, concerns about the outlook for the US economy will persist in the market. In addition, the unpredictable impact of the US government's economic policies, trade tensions, and geopolitical developments on financial markets will continue to be difficult to predict.