July 24, 2019 / 8:43 AM / a month ago

Hong Kong Exchange Fund H1 investment income jumps nearly five times - HKMA

HONG KONG, July 24 (Reuters) - Hong Kong’s Exchange Fund, which is used to back the Hong Kong dollar, posted investment income of HK$170.8 billion ($21.86 billion) in the first half of 2019, up nearly five times on the year, the Hong Kong Monetary Authority (HKMA) said on Wednesday.

The figure compared with a HK$35.0 billion investment gain in the same period a year earlier, and an investment loss of HK$33.6 billion in the fourth quarter of 2018.

HKMA’s Chief Executive Norman Chan said global equity markets rebounded significantly in early 2019, amid expectations of easing trade tension.

“Looking ahead, the investment environment is still fraught with uncertainties in the second half of the year,” he added.

“While in end-June China and the United States agreed to resume trade negotiations, it cannot be assumed that an agreement would definitely be reached any time soon.”

In 2018, the exchange fund recorded adjusted investment income of HK$10.9 billion, a drop of 95.9 percent from 2017.

The HKMA is the key manager of the Exchange Fund, which is controlled by the financial secretary and invests in equities, bonds, foreign exchange and other securities and assets. ($1=7.8134 Hong Kong dollars) (Reporting by Twinnie Siu and Meg Shen; Editing by Clarence Fernandez)

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