HONG KONG (Reuters) -Hong Kong’s Exchange Fund, which is used to back the Hong Kong dollar, posted investment income of HK$170.5 billion ($21.9 billion) in 2021, the Hong Kong Monetary Authority said on Thursday, the lowest in three years.
The figure compared with an investment gain of a revised HK$235.8 billion in 2020. Investment income for the fourth quarter amounted to HK$26.8 billion against HK$145.0 billion in the same period the previous year.
“As global economic recovery moderates with slowing growth momentum of corporate earnings and lingering concerns over new virus variants and geopolitical tensions, the investment environment will remain uncertain,” said Eddie Yue, HKMA chief executive.
“We will remain flexible, implement defensive measures as appropriate, and maintain a high degree of liquidity,” Yue added.
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.
($1 = 7.7912 Hong Kong dollars)
(Reporting by Twinnie Siu and Donny Kwok; Editing by Toby Chopra and Alison Williams)
