The Hong Kong Monetary Authority ("HKMA") reported that the total assets of the Exchange Fund decreased to HK$4,070.2 billion as of August 31, 2025, with foreign currency assets decreasing by HK$36.1 billion and Hong Kong dollar assets increasing by HK$3.7 billion. The Currency Board Account showed a decrease in the Monetary Base to HK$2,014.2 billion, and the Backing Assets decreased by HK$80.3 billion, leading to a change in the Backing Ratio.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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As at 31 August 2025, the total assets of the Exchange Fund under the supervision of the Hong Kong Monetary Authority ("HKMA") stood at HK$4,070.2 billion. This represents a decrease of HK$32.4 billion from the end of July 2025. The decrease in foreign currency assets, particularly in US dollars, amounted to HK$36.1 billion, while the value of Hong Kong dollar assets increased by HK$3.7 billion. This increase was largely attributable to the mark-to-market revaluation of Hong Kong equities.
The Currency Board Account's Monetary Base for August 2025 was recorded at HK$2,014.2 billion. This figure decreased by HK$28.4 billion, a 1.4% decrease from the end of July 2025. The reduction was primarily due to HK dollar purchases under Currency Board arrangements, which were partly offset by an increase in the outstanding amount of Certificates of Indebtedness.
The Backing Assets total decreased by HK$80.3 billion, or 3.5%, to HK$2,211.2 billion at the end of August 2025. This decrease was largely due to the transfer of assets from the Backing Portfolio to the Investment Portfolio, following an arrangement approved by the Exchange Fund Advisory Committee, and the sale of US dollars under Currency Board arrangements. Consequently, the Backing Ratio fell from 112.19% to 109.78% over the same period.
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