Hong Kong Monetary Authority Investment Portfolio

Country: Hong Kong

Established: 1993

US$ Billion: 139.7

Origin: Non-commodity

Entity Structure: Fund

Transparency Rating: 8

Established in April 1993, it is managed by the Hong Kong Monetary Authority (HKMA). The Exchange Fund acts as a stabilizer and invests primarily in its local exchange, the Hang Seng. All Exchange Fund assets can be used to support the Hong Kong dollar exchange rate. The Exchange Fund uses global external managers to administer about one third of its total assets, including all of its equity portfolios and other specialized assets.

The exchange fund can be broken into two parts:

Part 1: Backing Portfolio

The purpose of this portfolio is to hold US dollar denominated assets for the purpose of providing full backing for the Monetary Base of Hong Kong.

Part 2: Investment Portfolio

We consider this the sovereign wealth fund.

Name Amount 8/31/2009
Exchange Fund 247,668,752,581
- Backing Portfolio 108,016,399,073
Investment Portfolio 139,652,353,508

News and Updates

Hong Kong foreign-currency reserves up $7.1 billion in April
Xinhua reported that, "Hong Kong's official foreign- currency reserve assets rose to 193.4 billion U.S. dollars in April, up 7.1 billion U.S. dollars on March, the Monetary Authority of Hong Kong said on Thursday. Including unsettled forward contracts, foreign currency reserve assets stood at 194 billion U.S. dollars. The total foreign-currency reserve assets represent about eight times the currency in circulation, or 45 percent of Hong Kong dollar M3. Hong Kong is the world's seventh largest holder of foreign currency reserves, after the Chinese mainland, Japan, Russia, China's Taiwan, India and South Korea."
read more: Xinhua

Hong Kong May Use Foreign Reserves to Prevent Financial Crisis
Hong Kong may use all of its foreign reserves to stabilize its financial markets, said a government official, after the global credit crisis undermined investor confidence and caused stocks to plunge.
read more: Bloomberg

High-Risk alternative investment products for the Exchange Fund
Sources say the Hong Kong Monetary Authority has formed a new group dedicated to bringing in high-risk alternative investment products to the Exchange Fund portfolio in a bid to boost its investment return.
read more: Thomson Reuters


Hong Kong Monetary Authority Site
Exchange Fund

1. All figures quoted are from official sources, or, where the institutions concerned do not issue statistics of their holdings, from other publicly available sources.

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