The Hong Kong Monetary Authority ("HKMA") released the Exchange Fund Abridged Balance Sheet and Currency Board Account for September 2025. The total assets of the Exchange Fund increased by HK$82.0 billion to HK$4,152.2 billion, with HK$97.2 billion in Hong Kong dollar assets and a decrease of HK$15.2 billion in foreign currency assets. The Monetary Base increased by HK$6.0 billion to HK$2,020.2 billion, and the Backing Assets increased by HK$7.0 billion to HK$2,218.2 billion.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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The Hong Kong Monetary Authority ("HKMA") announced on October 31, 2025, that the total assets of the Exchange Fund stood at HK$4,152.2 billion as of September 30, 2025. This figure represented a HK$82.0 billion increase from the end of August 2025, driven primarily by a HK$97.2 billion rise in Hong Kong dollar assets and a HK$15.2 billion decrease in foreign currency assets.
The surge in Hong Kong dollar assets can be attributed to the issuance of Exchange Fund Bills and Notes not yet settled at month-end and the revaluation of Hong Kong equities on a mark-to-market basis. Conversely, the decline in foreign currency assets was largely due to withdrawals of Fiscal Reserves placements and reductions in unsettled purchases of securities, though these factors were partially mitigated by interest income from investments and the revaluation of investments.
The Currency Board Account indicates that the Monetary Base increased to HK$2,020.2 billion at the end of September 2025, a HK$6.0 billion rise or 0.3% from the end of August 2025. The increase was largely driven by an increase in the outstanding amount of Certificates of Indebtedness and the amortisation of discounts on Exchange Fund Bills and Notes.
The amount of Backing Assets increased by HK$7.0 billion to HK$2,218.2 billion at the end of September 2025, up by 0.3%, largely due to interest income from investments. Consequently, the Backing Ratio rose from 109.78% at the end of August 2025 to 109.80% at the end of September 2025.
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