(Budget 2026) HK to transfer $150 billion from Exchange Fund to finance infrastructure

Hong Kong plans to transfer HK$150 billion from the Exchange Fund to finance infrastructure projects following a record‑breaking performance last year. 

The fund, which backs the local dollar, will see a withdrawal of HK$75 billion in each of the coming two financial years to the Capital Works Reserve Fund in support of the Northern Metropolis and other projects, Financial Secretary Paul Chan Mo-po said.

The Exchange Fund delivered an “exceptional” investment gain of HK$330 billion last year. 

Chan said the transfer will be made on the premise that the fund's function to maintain the stability and integrity of the local monetary and financial systems will not be compromised. 

The Exchange Fund paid HK$31.2 billion in total in fees to the government on placements of the fiscal reserves and other government funds and statutory bodies, with the rate of fee payment at 4.4 percent for 2025.