The Hong Kong Monetary Authority ("HKMA") announced that the total assets of the Exchange Fund decreased to HK$4,102.6 billion as of July 31, 2025, with decreases in both foreign currency and Hong Kong dollar assets. The Currency Board Account showed a decline in the Monetary Base and a decrease in Backing Assets, but the Backing Ratio increased.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
SFC Regulation of Virtual Asset Trading Platforms: The Emerging Hong Kong Framework
SFC proposes new regulation of virtual assets through licensing of operators of cryptocurrency and other digital asset trading platforms
Market Misconduct Tribunal: A Guide to Penalties and Other Consequences for Misuse of Insider Information
Market Misconduct Tribunal proceedings for mishandling of insider information can result in fines and disgorgement orders
SPOTLIGHT ON
FAMILY OFFICES
The Hong Kong Monetary Authority ("HKMA") released its latest report today, detailing that the total assets of the Exchange Fund stood at HK$4,102.6 billion as of 31 July 2025, a decrease of HK$194.5 billion compared to the end of June 2025.
The reduction was primarily due to a significant decrease in foreign currency assets, which declined by HK$106.1 billion. This decrease was mainly attributable to the sale of US dollars under the Currency Board arrangements and the reduction in month-end balances of unsettled purchase of securities. These factors were partially offset by interest income from investments.
Hong Kong dollar assets also decreased by HK$88.4 billion, largely due to a reduction in Exchange Fund Bills and Notes issued but not yet settled at the month-end.
The Currency Board Account showed a decrease of HK$77.6 billion in the Monetary Base, amounting to HK$2,042.6 billion by the end of July 2025. This decrease of 3.7% compared to the end of June 2025 was primarily due to the purchase of HK dollars under the Currency Board arrangements.
The amount of Backing Assets decreased by HK$73.3 billion to HK$2,291.5 billion at the end of July 2025. This reduction, equivalent to a 3.1% decline, was primarily attributed to the sale of US dollars under the Currency Board arrangements. These reductions were partly offset by interest income from investments.
The Backing Ratio, which measures the proportion of Backing Assets to Exchange Fund assets, increased from 111.54% at the end of June 2025 to 112.19% at the end of July 2025, reflecting a more stringent ratio indicative of the authority's prudential measures.
View the full article:Source
