S&P500 Drives Hong Kong’s Financial War Chest to Record Gains Amid Stimulus Measures
Record Gains for Hong Kong's Exchange Fund
The Exchange Fund reported remarkable quarterly results, achieving an investment return of HK$224.7 billion (US$28.8 billion) in the first nine months of this year, marking the best performance on record. The Hong Kong Monetary Authority (HKMA) attributes these gains to a diversified investment strategy and improved market conditions, directly correlated to the recovery of both the stock market and global economic measures.
Market Rebound and Investment Strategies
- The Hang Seng Index increased by 19%, contributing HK$21.9 billion to the fund.
- US Federal Reserve’s 50 basis point interest rate cut fell on September 18, coinciding with the stock market rally.
- Beijing’s bold stimulus measures aimed at the housing market recovery provided a further boost.
Investment Highlights
- Stocks: HK$66 billion gains from equities, marked an increase of 63% year on year.
- Bonds: Investment returns soared to HK$124.3 billion in the first nine months.
- Foreign exchange: Though losses from depreciation narrowed, they remained a significant factor.
The HKMA’s strategy to diversify investments across global bonds, real estate, and equities has resulted in consistent gains over four consecutive quarters. The authority remains cautious of upcoming uncertainties in global markets, promising vigilance in monitoring financial affairs.
Outlook on Financial Affairs
As Eddie Yue Wai-man, the chief executive of the HKMA, mentioned, the outlook remains cautiously optimistic, aiming for continued positive performance. The financial landscape of Hong Kong, supported by the strategic movements in New York and regional efforts, positions it for a favorable recovery trajectory.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.