The Hong Kong Monetary Authority published the Exchange Fund’s unaudited financial position at end-June 2026, reporting investment income of HKD 134.7 billion for the first half. Gains of HKD 53.7 billion on non-Hong Kong equities and HKD 49.1 billion on bonds, together with a HKD 34.3 billion positive currency translation effect, offset an HKD 11.8 billion loss on Hong Kong equities. Total assets reached HKD 4,463.6 billion, up HKD 302.4 billion from end-2025, while accumulated surplus stood at HKD 862.7 billion. Fees on placements by the Fiscal Reserves and by Hong Kong government funds and statutory bodies were HKD 10.9 billion and HKD 5.8 billion, respectively, based on a 4.8% fee payment rate for 2026. The authority warned that uncertainty over artificial intelligence-related asset valuations, U.S. monetary policy, geopolitical tensions and exchange rates could increase market volatility in the second half. It also cautioned that the first-half currency translation gains may not be sustained.
Hong Kong Monetary Authority2026-07-28
Hong Kong Monetary Authority reports HKD 134.7 billion Exchange Fund investment income for first half of 2026
The Hong Kong Monetary Authority reported HKD 134.7 billion of Exchange Fund investment income for the first half of 2026, as gains on bonds, overseas equities and currency translation outweighed losses on Hong Kong equities. Total assets rose to HKD 4,463.6 billion at end-June, while accumulated surplus reached HKD 862.7 billion. The authority warned that market and exchange-rate volatility could weigh on second-half results.