HK Exchange Fund records major decline in investment gains amid Iran war
發佈日期: 2026-05-04 19:37
TVB News
Hong Kong's Exchange Fund recorded investment gains for five consecutive quarters reaching 34.5 billion dollars in the first quarter of 2026, but the figure dropped by 56 percent compared with the same period last year.
This as Hong Kong Monetary Authority Chief Executive Eddie Yue said the instability brought about by the Iran war contributed to the decline in gains, adding that he does not expect positive results in the second quarter of this year.
He stressed the fund will further enhance its liquidity.
Hong Kong's Exchange Fund has been reeling from the financial consequences of the war in Iran since the conflict began in the end of February.
The fund managed to rake in 34.5 billion dollars over the course of the the first quarter of this year -- marking five consecutive quarters of investment gains -- but also experienced a drop of 56 percent year-on-year.
The figure also declined by 34 percent on a quarterly basis.
Throughout Q1, the fund's Hong Kong stock investments lost 5 billion dollars while other stock investments lost around 11 billion dollars.
Bonds and foreign exchange investment, on the other hand, logged gains of over 50 billion dollars.
This as 5.8 billion dollars in investment income have been earmarked for the government's fiscal reserves.
Speaking at a Legislative Council Financial Affairs Panel meeting today, HKMA Chief Executive Eddie Yue stressed the HKMA will aim for further diversification as US dollar assets continue to dominate the Exchange Fund.
Yue noted authorities are unsure how the Iran war will progress and its impact on oil prices and inflation, emphasising that maintaining and enhancing the fund's high liquidity will be their chief aim.
He said despite the US Federal Reserve being unlikely to cut interest rates for the rest of this year according to market expectations, the city's economy remains resilient.
