The Hong Kong Monetary Authority (HKMA) today announced the un-audited balance sheet of the Exchange Fund as at the end of June 1998. The figures released show that in the first half of 1998, total assets of the Exchange Fund rose by 3.6% from HK$636.7 billion at the end of December 1997 to HK$659.5 billion at the end of June 1998. The accumulated surplus of the Exchange Fund, including minority interests, increased by 6.2% from HK$190.2 billion at the end of December 1997 to HK$202 billion at the end of June 1998.
In commenting on the figures, Mr. Joseph Yam, Chief Executive of the HKMA said: "The 6.2% increase in the accumulated surplus in a period of volatility, with financial turmoil in Asia, is highly encouraging."
The HKMA has continued to manage the Exchange Fund prudently. It adopted a defensive bond and currency strategy in the first half of 1998 amid volatile markets.
The HKMA considers the investment outlook for the second half of 1998 unfavourable. Volatility in global equity and bond markets is expected to increase with the emergence of Euro. The prospects for higher US interest rates are there and these would impact upon the US debt and equity markets adversely. With the US dollar continuing to be strong, the performance of non-US dollar assets of the Fund may also not be attractive in US dollar terms.
"But the HKMA will continue its prudent management of the Exchange Fund and achieve a fine balance in terms of return, risk and liquidity, in full compliance with the guidelines set by the Exchange Fund Advisory Committee," added Mr. Yam.
Compared to the same period last year, growth of the total assets of the Exchange Fund decelerated in the first half of 1998 due to a slowdown in the placements of fiscal reserves from the Government Treasury. It is expected that further drawdowns of fiscal reserves in the second half of 1998 may lead to a decrease in the size of the total assets of the Exchange Fund by the end of 1998.
Hong Kong Monetary Authority
23 July 1998
|
Exchange Fund Balance Sheet as at
|
| |
30 June
1998 |
31 December 1997 |
30 June 1997 |
31 December 1996 |
30 June 1996 |
31 December 1995 |
| |
(Unaudited) |
(Audited) |
(Unaudited) |
(Audited) |
(Unaudited) |
(Audited) |
| |
HK$ Million |
HK$ Million |
HK$ Million |
HK$ Million |
HK$ Million |
HK$ Million |
| |
(Group) |
(Group) |
(Fund) |
(Fund) |
(Fund) |
(Fund) |
| ASSETS |
|
|
|
|
|
|
| Cash and short-term funds |
98,615 |
99,880 |
125,050 |
126,648 |
117,208 |
100,343 |
| Fixed deposits |
50,565 |
74,999 |
66,796 |
63,401 |
56,780 |
76,830 |
| Certificates of deposit |
43,522 |
69,387 |
74,578 |
64,065 |
49,880 |
23,657 |
| Investments |
446,774 |
374,588 |
292,302 |
270,869 |
249,326 |
250,702 |
| Mortgage loans |
4,141 |
650 |
|
|
|
|
| Fixed assets |
287 |
290 |
167 |
166 |
97 |
58 |
| Other assets |
15,633 |
16,896 |
9,861 |
9,368 |
11,703 |
9,144 |
Total Assets
(Appendix A) |
659,537 |
636,690 |
568,754 |
534,517 |
484,994 |
460,734 |
|
|
|
|
|
|
|
|
| LIABILITIES |
|
|
|
|
|
|
| Certificates of Indebtedness |
84,675 |
87,015 |
91,985 |
82,480 |
78,270 |
77,600 |
| Coins in circulation |
5,648 |
5,399 |
4,564 |
4,164 |
3,797 |
3,597 |
| Balance of banking system |
497 |
296 |
480 |
474 |
3,925 |
1,762 |
| Exchange Fund Bills and Notes |
87,758 |
89,338 |
89,338 |
83,509 |
56,726 |
53,311 |
| The Hong Kong Mortgage Corporation Limited Notes |
1,362 |
|
|
|
|
|
| Fiscal Reserves Account |
245,393 |
237,629 |
182,168 |
145,898 |
148,801 |
125,916 |
| Placements by other institutions and other borrowings |
24,887 |
21,062 |
13,504 |
39,125 |
25,813 |
34,302 |
| Other liabilities |
7,272 |
5,740 |
4,828 |
6,005 |
6,008 |
4,112 |
| Total Liabilities |
457,492 |
446,479 |
386,867 |
361,655 |
323,340 |
300,600 |
| NET ASSETS |
202,045 |
190,211 |
181,887 |
172,862 |
161,654 |
160,134 |
|
|
|
|
|
|
|
|
| REPRESENTING |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ACCUMULATED SURPLUS |
201,949 |
190,136 |
181,887 |
172,862 |
161,654 |
160,134 |
| MINORITY INTERESTS |
96 |
75 |
|
|
|
|
| TOTAL |
202,045 |
190,211 |
181,887 |
172,862 |
161,654 |
160,134 |
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Note : The consolidated balance sheet for 30 June 1998 and 31 December 1997 comprises the accounts of the Exchange Fund (Fund) and its subsidiary companies (Group).
Balance sheets for prior periods were not prepared on a consolidated basis. The financial effect of the change is immaterial.
|
TOTAL ASSETS
|
| |
30 June 1998 |
31 December 1997 |
30 June 1997 |
31 December 1996 |
30 June 1996 |
31 December 1995 |
| |
(Unaudited) |
(Audited) |
(Unaudited) |
(Audited) |
(Unaudited) |
(Audited) |
| HK$mn |
(Group) |
(Group) |
(Fund) |
(Fund) |
(Fund) |
(Fund) |
|
|
|
|
|
|
|
|
| Foreign currency assets |
608,923 |
588,475 |
523,891 |
493,802 |
443,609 |
428,547 |
| Hong Kong dollar assets |
50,614 |
48,215 |
44,863 |
40,715 |
41,385 |
32,187 |
| Total |
659,537 |
636,690 |
568,754 |
534,517 |
484,994 |
460,734 |
|
|
|
|
|
|
|
|
| Statistics on total foreign currency assets and forward foreign exchange transactions of the Exchange Fund are shown below. |
| HK$mn |
30 June 1998 |
31 December 1997 |
30 June 1997 |
31 December 1996 |
30 June 1996 |
31 December 1995 |
| Exchange Fund foreign currency assets excluding forward transactions |
608,923 |
588,475 |
523,891 |
493,802 |
443,609 |
428,547 |
| Net forward transactions |
190 |
1,892 |
16,377 |
44,235 |
20,578 |
13,507 |
| Including forward transactions |
609,113 |
590,367 |
540,268 |
538,037 |
464,187 |
442,054 |
| US$ equivalent at market rates |
US$78,609 mn |
US$76,191 mn |
US$69,736 mn |
US$69,559 mn |
US$59,966 mn |
US$57,171 mn |
|
|
|
|
|
|
|
|
| Note : The consolidated balance sheet for 30 June 1998 and 31 December 1997 comprises the accounts of the Exchange Fund (Fund) and its subsidiary |
| companies (Group). Balance sheets for prior periods were not prepared on a consolidated basis. The financial effect of the change is immaterial. |
