Hong Kong Exchange Fund Investment Highs in the First Three Quarters Record High

As the stock market continued to improve, the Hong Kong Monetary Authority (HKMA) announced on Monday that the Exchange Fund recorded record high investment income of HK $ 188.8 billion for the first three quarters of 2017. However, the chief executive of the HKMA, Chen Tak-lin, believes that the market valuation is rather high and caution may be reversed Variety.

Mr Chan told reporters after the Legislative Council meeting that market optimism seems likely to continue for some time. However, attention should be paid to the two potential risks. One is whether the interest rate trend in the United States will continue to be moderate and the other is the geo-location brought by the unabated situation in North Korea Political risk.

"The first three quarters reported a good return, but the Exchange Fund focused on medium- and long-term returns." "The stock market has been moving well since the end of September and the future performance depends on whether potential risks will emerge or not, and the risk of the stock market taking or shedding is considerable."

For the first three quarters of January-September, the foreign exchange investment income was HK $ 189.8 billion, an increase of 108% over the HK $ 91.4 billion figure of the same period of last year. Of these, 53% were stock returns, 23% were changes in foreign exchange valuations, 14% were bonds and the rest came from private equity funds and Real estate and other investments. During the same period, the Hong Kong stock index Hang Seng Index has risen by 20%.

The exchange fund recorded investment income of HK $ 53.6 billion in the third quarter of July-September, up 14% YoY, but with a quarterly decrease of 25%, mainly reflecting fluctuations in the foreign exchange market.