Yue said sentiment will depend on the global economic situation and any potential spillover of U.S. bank problems on the wider financial system. The HKMA is the key manager of the Exchange Fund, which is under the control of the financial secretary and invests in equities, bonds, foreign exchange and other securities and assets. In 2022, the exchange fund recorded an adjusted investment loss of HK$205.4 billion.
During the first quarter, the fund's holdings of Hong Kong equities recorded investment income of HK$3.3 billion, compared with a HK$16.3 billion gain in October-December and a HK$9.4 billion loss in the same period a year ago. Meanwhile, the gain on other equities narrowed to HK$25.5 billion for the first quarter versus a HK$31.4 billion gain the previous quarter. The gain from bonds was HK$43.9 billion in the first three months of the year compared with a gain of HK$25.5 billion in the fourth quarter of last year. ($1 = 7.8480 Hong Kong dollars) (Reporting by Twinnie Siu and Donny Kwok; Editing by Christian Schmollinger, Edmund Klamann and Louise Heavens)
