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.
SITI visits Guangxi
The Secretary for Innovation, Technology and Industry, Professor Sun Dong, visited Nanning in Guangxi today (January 14).
This morning, Professor Sun called on the Secretary of the CPC Guangxi Zhuang Autonomous Region Committee and Director of the Standing Committee of the Guangxi Zhuang Autonomous Regional People's Congress, Mr Chen Gang, and learned that Guangxi is accelerating the high-quality development of artificial intelligence and building an industrial co-operation highland for the AI industry facing the Association of Southeast Asian Nations (ASEAN). They also had exchanges and in-depth discussions on further strengthening the co-operation and synergistic development between Hong Kong and Guangxi in various areas including AI, innovation and technology (I&T) parks, data infrastructure, data governance, and nurturing talent. Member of the Standing Committee of the CPC Guangxi Zhuang Autonomous Region Committee and Vice Chairman of the People's Government of the Autonomous Region Ms Lu Xinning also attended the meeting.
Professor Sun said Hong Kong will fully leverage its distinctive advantage of having strong support from the motherland and a close connection with the world. Through complementary co-operation and synergistic development, Hong Kong and Guangxi will explore co-operation between the two places and with ASEAN countries in industries such as AI and the digital economy.
Professor Sun then met with Member of the Standing Committee of the CPC Guangxi Zhuang Autonomous Region Committee and the Secretary of the CPC Nanning Municipal Committee, Mr Xu Yongguo, to exchange views on I&T co-operation between Hong Kong and Nanning.
Professor Sun visited the Display Center of the China-ASEAN Countries Artificial Intelligence Application Cooperation Center and toured its display hall. The Center is an AI co-operation platform, jointly established by the Guangxi Zhuang Autonomous Region and ASEAN countries, which aims to promote regional co-operation in AI technologies and the digital transformation of industries. The center is also an industrial highland facing ASEAN.
He was briefed on the Center's construction and operation, as well as its co-operation with ASEAN countries. He also observed the AI+ industries and application scenarios, including industrialisation and social governance, and exchanged views on the co-operation model of research and development, integration in Guangxi, and applications in ASEAN.
Professor Sun also visited the exhibition centre of the China-ASEAN Information Harbor and the Beibu Gulf Big Data Exchange Center and studied the collaboration in AI between Guangxi and ASEAN countries, as well as the development and transaction of data products. He also learned about the cross-boundary data flow channels and industrial Internet platforms, the construction of the Digital Silk Road, and co-operation with the ASEAN market.
Professor Sun then visited the China-ASEAN Geographic Information Town to study the industrial applications of technologies, such as satellite navigation and geographic information, in the fields of smart city, cross-boundary logistics, and so on.
Meanwhile, Professor Sun visited the China-ASEAN Mercantile Exchange (China-Singapore Nanning International Logistics Park) to learn about the operation of the large-scale cross-boundary integrated logistics park and one-stop trade platform that integrates functions including production, warehousing, logistics, exhibition, commerce and finance. He also studied the international co-operation between ASEAN countries and Guangxi through the Western New Land-Sea Corridor.
Upon his arrival in Nanning, Guangxi yesterday, Professor Sun immediately met with Deputy Secretary-General of the People's Government of the Guangxi Zhuang Autonomous Region, Party Secretary and Director of the Guangxi Big Data Development Bureau Mr Zhao Zhigang, to have an in-depth exchange on issues including the promotion of data sharing, smart city development, and co-operation in digital industry.
The Chief Executive Officer of Hong Kong Cyberport Management Company Limited, Dr Rocky Cheng, also joined the visit.
Professor Sun will continue his visit tomorrow. He will visit a digital intelligent operations and maintenance service provider and its intelligent computing centre to learn about the service provider's latest achievements in AI and computing power, digital intelligence technology and products. He will also visit the China Mobile Group Guangxi Company to conduct studies on the planning of its infrastructure in computing power and its AI industry large models.
Professor Sun will conclude his visit before noon and return to Hong Kong.
SITI visits Guangxi Source: HKSAR Government Press Releases
SITI visits Guangxi Source: HKSAR Government Press Releases
SITI visits Guangxi Source: HKSAR Government Press Releases
