Exchange Fund Abridged Balance Sheet and Currency Board Account

The Hong Kong Monetary Authority (HKMA) announced today (17 December) that the total assets of the Exchange Fund amounted to HK$968.1 billion as at 30 November 1999.

The figure is included in the Exchange Fund Abridged Balance Sheet, which is released on a monthly basis together with the Currency Board Account. The footnotes on the Exchange Fund Abridged Balance Sheet refer to the related items on the Currency Board Account.

At end-November 1999, the total assets of the Exchange Fund, at HK$968.1 billion, were HK$23.0 billion higher than at end-October 1999. Both foreign currency assets and Hong Kong dollar assets increased, by HK$12.2 billion and HK$10.8 billion respectively.

The increase in foreign currency assets reflected mainly purchases of foreign currencies with Hong Kong dollars.

The rise in Hong Kong dollar assets was due largely to the increase in the market value of Hong Kong equities held by the Exchange Fund and increases in placements by other government funds. The increases were, however, partly offset by a decrease in bank borrowings and the sale of Hong Kong dollars for foreign currencies.

Figures in the Currency Board Account show that the Monetary Base at end-November was HK$202.5 billion, an increase of HK$3.4 billion, or 1.71%, from end-October 1999. The rise was mainly attributable to the increases in the Aggregate Balance and Certificates of Indebtedness, by HK$2.3 billion and HK$0.5 billion respectively.

The backing assets increased by HK$3.6 billion, or 1.62%, from HK$221.1 billion to HK$224.7 billion. The rise was mainly driven by the corresponding increases in the Aggregate Balance and Certificates of Indebtedness in the Monetary Base, together with net income and revaluation gains. As at end-November, the backing ratio stood at 110.93%, compared with 111.03% at end-October.

Attachment

Annex 1 : Abridged Balance Sheet of the Exchange Fund

Annex 2 : Currency Board Account

Hong Kong Monetary Authority

17 December 1999