Exchange Fund Abridged Balance Sheet and Currency Board Account

On 27 February 2026, the Hong Kong Monetary Authority ("HKMA") reported that the total assets of the Exchange Fund stood at HK$4,285.6 billion as of 31 January 2026, representing a notable increase of HK$134.2 billion from the previous year-end.

The primary contributors to this increase were a HK$107.0 billion surge in foreign currency assets and a HK$27.2 billion increase in Hong Kong dollar assets. The growth in foreign currency assets was largely attributed to increases in month-end balances of unsettled security purchases, interest income, and mark-to-market revaluation of investments. Furthermore, the issuance of Certificates of Indebtedness played a significant role. The rise in Hong Kong dollar assets was primarily driven by increased placements with banks and the mark-to-market revaluation of Hong Kong equities.

The Currency Board Account for the end of January 2026 indicates a Monetary Base of HK$2,058.7 billion, marking a HK$18.7 billion (or 0.9%) increase from December 2025. This growth is largely attributed to an increase in the outstanding amount of Certificates of Indebtedness, which reflects the seasonal demand for banknotes during Chinese New Year, and the amortisation of discount on Exchange Fund Bills and Notes.

The amount of Backing Assets increased by HK$28.9 billion (or 1.3%) to HK$2,279.8 billion at the end of January 2026. The increase was primarily driven by the issuance of Certificates of Indebtedness, interest income from investments, and the mark-to-market revaluation of investments. Consequently, the Backing Ratio improved from 110.34% at the end of December 2025 to 110.74% at the end of January 2026.