Hong Kong Exchange Fund gains US$13 billion in first half of 2024 amid market rallies
- The war chest that defends the local currency ‘registered a decent investment income in the first half of 2024’, says monetary authority CEO
![The Exchange Fund defends Hong Kong’s currency from attacks by hedge funds and currency traders. Photo: K. Y. Cheng](https://cdn.i-scmp.com/sites/default/files/styles/1020x680/public/d8/images/canvas/2024/07/30/172b70c2-8220-4285-b409-927681653aba_802bb2d5.jpg?itok=PHHem52i&v=1722330597)
Hong Kong’s Exchange Fund, the war chest used to defend the local currency, posted an investment return of HK$104 billion (US$13 billion) in the first half of the year as stock markets rallied globally.
The fund returned HK$41.7 billion in the second quarter, almost a fivefold jump compared with HK$8.4 billion a year ago. The gain is 33 per cent lower than the HK$62.3 billion the fund earned in the first quarter, according to updated data, but is the third consecutive positive quarter after a loss of HK$10.5 billion in the third quarter of 2023.
“Overall, the Exchange Fund registered a decent investment income in the first half of 2024,” said Eddie Yue Wai-man, CEO of the HKMA.
He said the expectation of an interest rate cuts improved market sentiment in Hong Kong and overseas markets.
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