Hong Kong Exchange Fund's total assets reached HKD1.119 trillion at the end of January, an increase of HKD50.3 billion over the previous month. According to Hong Kong's Monetary Authority, foreign currency assets and Hong Kong dollar assets increased by HKD32.5 billion and HKD17.8 billion, respectively during January. Foreign currency assets increased during the month mainly because of an increase in Certificates of Indebtedness, valuation gains on foreign currency investments together with interest and dividends from foreign currency assets. The Hong Kong dollar assets increased mainly due to placements received from fiscal reserves and gains in the market value of Hong Kong equities held by the Exchange Fund. The Monetary Base stood at HKD303.8 billion at the end of January, an increase of HKD19.8 billion, or 7% from the end of the previous month. The increase is attributed mainly to increases in Certificates of Indebtedness and in government-issued currency notes. 

Title: Hong Kong, Exchange Fund Assets – Jan 2006

Assets

 Dec-05

(HKD mn)

 Jan-06

(HKD mn)

 % Change

m/m

Foreign currency assets

      972,329

             1,004,834

 3.3%

Hong Kong dollar assets

        96,525

                114,331

 18.4%

Total Assets

   1,068,854

             1,119,165

 4.7%

Source: HKMA