HONG KONG, Jan. 28 (Xinhua) -- Hong Kong's Exchange Fund recorded an
investment income of 106.7 billion HK dollars (13.7 billion U.S. dollars) in
2009, the second highest on record, the Hong Kong Monetary Authority announced
Thursday.
The total assets of the Exchange Fund increased by 591.4 billion HK dollars
(75.8 billion U.S. dollars) to 2,151.7 billion HK dollars (275.9 billion U.S.
dollars) at the end of 2009 from a year earlier, mainly due to capital inflows
to the HK dollar, the Monetary Authority said.
The full-year investment return was 5.9 percent, it said.
The investment income comprises 48.9 billion HK dollars of gain on Hong
Kong equities, and 48.7 billion HK dollars from other equities, among
others.
There was also an exchange valuation gain of 9.8 billion HK dollars thanks
to the appreciation of other currencies against the Hong Kong dollar, which was
partly offset by a valuation loss of 0. 7 billion HK dollars on bonds and other
investments.
The net investment income, after deducting interest and other expenses, was
103.2 billion HK dollars (13.2 billion U.S. dollars).
The average investment returns of the Exchange Fund was, respectively, 3.8
percent over the last three years, 5 percent over the past decade and 6.1
percent since 1994.
Norman Chan, Chief Executive of the Monetary Authority, said the investment
environment last year was extremely uncertain and volatile, with the major
equity markets under pressure in the first quarter but starting to recover from
the second.
"U.S. bond yields saw a sharp rise during the year, especially at the long
end, with concerns over the supply of U.S. government bonds and uncertainties
about the timing and pace of the exit from monetary easing," he added.
Chan said prospects for the global financial markets were far from
certain.
"I expect that the uncertainties surrounding the movements of interest
rates, international fund flows and exchange rates may lead to considerable
volatility in global asset markets in 2010," he said. (7.8 HK dollars = 1 U.S.
dollar)
Special
Report: Global Financial Crisis
