HK Exchange Fund hits record high for 2025

Hong Kong's Exchange Fund hit a record high investment income of 331 billion dollars in 2025.

The Hong Kong Monetary Authority on Wednesday said the general performance of the city's exchange fund was positive last year.

Among the total recorded exchange fund's investment income of 331 billion dollars, bond holdings reached 142.2 billion, whereas equity holdings was at 108 billion.

Overall, the exchange fund achieved an investment return of eight percent in 2025.

"This (overall positive returns in Exchange Fund) is uncommon and has occured only twice over the past 15 years," said HKMA Chief Executive Eddie Yue. "Looking ahead to 2026, the exceptional confluence of multiple favourable factors that shaped market performance in 2025 may not repeat and may not last long.

"Factors such as global economic conditions, monetary policy of major central banks, developments in AI and geopolitical conflicts could all affect market performance."

Despite uncertainties in the global financial market, HKMA said authorities do not make fluctuating investment decisions.

"As an institutional investor with such an amount of asset, it is impossible and impracticable for us to go in and go out of the market in a very big way on a daily or even weekly basis," said Howard Lee, CEO of HKMA's Exchange Fund Investment Office. "So, the important thing we need to do is to ensure that we have a very good portfolio construction; that we have a diversified asset classes."

When asked about whether HKMA would increase its gold holdings amid soaring prices, the financial institution said the amount is not significant because of the its low correlation to traditional assets such as stocks and bonds.