Exchange Fund Position at end-September 2025
The following is issued on behalf of the Hong Kong Monetary Authority:
The Hong Kong Monetary Authority (HKMA) today (November 13) published the unaudited financial position of the Exchange Fund at end-September 2025.
The Exchange Fund recorded an investment income of HK$274.0 billion in the first three quarters of 2025. The main components were:
- gains on bonds of HK$112.6 billion;
- gains on Hong Kong equities of HK$40.1 billion;
- gains on other equities of HK$59.5 billion;
- positive currency translation effect of HK$30.2 billion on
non-Hong Kong dollar assets (Note 1); and
- gains on other investments of HK$31.6 billion (Note 2).
Fees on placements by the Fiscal Reserves and placements by Hong Kong Special Administrative Region Government funds and statutory bodies were HK$12.3 billion (Note 3) and HK$11.8 billion respectively in the first three quarters of 2025, with the rate of fee payment at 4.4 per cent for 2025.
Total assets of the Exchange Fund stood at HK$4,152.2 billion at end-September 2025, representing an increase of HK$71.2 billion from the end of 2024. Accumulated surplus reached HK$916.3 billion at end-September 2025.
The Chief Executive of the HKMA, Mr Eddie Yue, said, "Stepping into the third quarter, various factors such as central bank monetary policies, the geopolitical environment and the fervor around the artificial intelligence industry were generally positive to the investment environment. Major asset classes delivered positive returns, with some leading stock market indices setting new highs during the quarter. Benefitting from capital inflows, the Hong Kong stock market also rose by 12 per cent in the third quarter. As for the bond market, while the US Federal Reserve (Fed) cut its monetary policy target rate in September, US bond yields remained at relatively high levels, generating good interest income for the Exchange Fund's bond portfolio. That said, the US dollar traded stronger against other major currencies during the third quarter, resulted in a negative currency translation effect on the Exchange Fund's assets. Overall, the Exchange Fund recorded decent investment income in the first nine months of 2025, with positive returns across major asset classes."
He added, "The investment landscape remains highly uncertain for the rest of 2025. While expectations of further rate cuts by the US Fed may improve investment sentiment, the market's concerns about the US's economic outlook may remain. Further, the impact of the rapid changes in the US Government economic and trade policies, trade frictions and geopolitical tensions on the financial markets remains unpredictable.
In the face of the complex and volatile investment environment, the HKMA will continue to adhere to the principle of capital preservation first while maintaining long-term growth. We will continue to manage the Exchange Fund with prudence and flexibility,implement appropriate defensive measures, and maintain a high degree of liquidity. We will also continue our investment diversification to strive for higher long-term returns, and ensure that the Exchange Fund remains effective in achieving its purpose of maintaining monetary and financial stability of Hong Kong."
Note 1: This is primarily the effect of translating foreign currency assets into Hong Kong dollar after deducting the portion for currency hedging.
Note 2: This is the valuation change of investments held by investment holding subsidiaries of the Exchange Fund. This figure reflects the valuations at the end of June 2025. Valuation changes of these investments from July to September are not yet available.
Note 3: This does not include the 2025 fee payment to the Future Fund because such amount will only be disclosed when the composite rate for 2025 is available.
Seven persons arrested during anti-illegal worker operation
The Immigration Department (ImmD) mounted an anti-illegal worker operation codenamed "Contribute" today (January 15).During the operation, ImmD Task Force officers raided premises under renovation in a newly built public housing estate in Sheung Shui district.A total of six suspected illegal workers and one suspected employer were arrested. Thearrested suspected illegal workers comprise six men, aged 22 to 41. Furthermore, one man, aged 45, suspected of employing the illegal workers, was also arrested. An investigation into the suspected employers is ongoing, and the possibility of further arrests is not ruled out.
Apart from mounting the enforcement operation, ImmD officers and a promotional vehicle have been deployed to distribute "Don't Employ Illegal Workers" leaflets and convey the message in the estate.
An ImmD spokesman said, "Any person who contravenes a condition of stay in force in respect of him or her shall be guilty of an offence. Also, visitors are not allowed to take employment in Hong Kong, whether paid or unpaid, without the permission of the Director of Immigration. Offenders are liable to prosecution and upon conviction face a maximum fine of $50,000 and up to two years' imprisonment. Aiders and abettors are also liable to prosecution and penalties."
The spokesman stressed that it is a serious offence to employ people who are not lawfully employable. Under the Immigration Ordinance, the maximum penalty for an employer employing a person who is not lawfully employable, i.e. an illegal immigrant, a person who is the subject of a removal order or a deportation order, an overstayer or a person who was refused permission to land, has been significantly increased from a fine of $350,000 and three years' imprisonment to a fine of $500,000 and 10 years' imprisonment to reflect the gravity of such offences. The director, manager, secretary, partner, etc, of the company concerned may also bear criminal liability. The High Court has laid down sentencing guidelines that the employer of an illegal worker should be given an immediate custodial sentence.
According to the court sentencing, employers must take all practicable steps to determine whether a person is lawfully employable prior to employment. Apart from inspecting a prospective employee's identity card, the employer has the explicit duty to make enquiries regarding the person and ensure that the answers would not cast any reasonable doubt concerning the lawful employability of the person. The court will not accept failure to do so as a defence in proceedings. It is also an offence if an employer fails to inspect the job seeker's valid travel document if the job seeker does not have a Hong Kong permanent identity card. Offenders are liable upon conviction to a maximum fine of $150,000 and to imprisonment for one year. In that connection, the spokesman would like to remind all employers not to defy the law by employing illegal workers. The ImmD will continue to take resolute enforcement action to combat such offences.
Under the existing mechanism, the ImmD will, as a standard procedure, conduct an initial screening of vulnerable persons, including illegal workers, illegal immigrants, sex workers and foreign domestic helpers, who are arrested during any operation with a view to ascertaining whether they are trafficking in persons (TIP) and/or forced labour victims. When any TIP and/or forced labour indicator is revealed in the initial screening, the ImmD officers will conduct a full debriefing and identification by using a standardised checklist to ascertain the presence of TIP and/or forced labour elements. Identified TIP and/or forced labour victims will be provided with various forms of support and assistance, including urgent intervention, medical services, counselling, shelter or temporary accommodation and other supporting services. The ImmD calls on TIP and/or forced labour victims to report crimes to the relevant departments immediately.
For reporting illegal employment activities, please call the dedicated hotline 3861 5000, by fax at 2824 1166, email to anti_crime@immd.gov.hk, or submit "Online Reporting of Immigration Offences" form at www.immd.gov.hk.
Seven persons arrested during anti-illegal worker operation Source: HKSAR Government Press Releases
Seven persons arrested during anti-illegal worker operation Source: HKSAR Government Press Releases
