Exchange Fund Rakes In HK$121bn On Market Rallies

The Hong Kong Exchange Fund logged an investment income of HK$121 billion for the first quarter of this year, led largely by HK$70 billion in gains from investments in local and overseas equities.

This follows the loss of around HK$34 billion recorded in the last quarter of the previous year.

The rally in global stock markets this year helped the fund to make HK$50 billion from overseas equities and nearly HK$21 billion from HK equities.

But announcing the results, the Hong Kong Monetary Authority's chief executive, Norman Chan, sounded a note of caution.

He said the markets are going to be volatile between different quarters because of factors like the Sino-US trade row and people need to take a medium to long term view on the fund’s performance.

Referring to US President Donald Trump's overnight warning of more tariffs on Chinese goods, Chan said the market still expects Beijing and Washington to resolve their trade dispute.

He warned that failing to clinch a deal would end up in a lose-lose situation that would deal a heavy blow to global markets.