Exchange Fund posts $219 billion earnings in 2024

The Exchange Fund, which backs the Hong Kong dollar, recorded HK$219 billion in investment income last year.

All but one investment category saw a positive return in 2024, including a profit of HK$135.6 billion from bonds and HK$21.8 billion from Hong Kong stocks, according to data released by the Hong Kong Monetary Authority on Monday. Gains from other equities amounted to HK$68.7 billion and returns on other investments reached HK$28.5 billion.

However, the fund also suffered a HK$35.6 billion loss on non-Hong Kong dollar assets as a result of the currency translation effect amid a strong US dollar.

The fund's overall investment return in 2024 was 5.3 percent, of which the investment portfolio gained 7.2 percent and the backing portfolio rose 4.1 percent.

Looking ahead, global financial markets remain uncertain with interest rate policies continuing to be the focus, according to Eddie Yue Wai-man, HKMA chief executive.

The new US administration's policies on the economy, tax, and trade could add uncertainties to the inflation path, which in turn affects how much room the Fed has in adjusting monetary policy, Yue said.