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Hong Kong Exchange Fund 2014 investment income HK$43.6b
[HONG KONG] Hong Kong's Exchange Fund, which is used to back the Hong Kong dollar, posted a HK$43.6 billion (US$5.62 billion) investment gain in 2014, the Hong Kong Monetary Authority (HKMA) said on Monday.
The figure compared with a HK$81.2 billion investment gain in the same period a year earlier. HKMA chief Norman Chan attributed the fall to great market volatility last year, as well as marked swings in major currencies and the US central bank paring down its asset purchase programme.
"I think 2015 will be even more difficult," said Mr Chan, partly given continued global economic uncertainty.
The investment return for 2014 was 1.4 percent, compared to 2.7 per cent in 2013.
The HKMA is the key manager of the Exchange Fund, which is under the control of the financial secretary and invests in equities, bonds, foreign exchange and other securities and assets.