Related News
First loss for HK exchange fund
HONG Kong's Exchange Fund, used to defend the city's currency peg with the United States dollar, posted its first annual investment loss since records began in 1994 because of the slump in global equities.
The fund lost HK$74.9 billion (US$9.7 billion) in 2008, Joseph Yam, chief executive of the Hong Kong Monetary Authority, said yesterday. It gained a record HK$142.2 billion in 2007.
Last year "was a very bad year as we encountered the financial tsunami of the century," Yam said.
The Hang Seng Index, the city's benchmark stock gauge, tumbled 48 percent last year, as the credit crisis pummeled investor confidence, Bloomberg News said. The turmoil, sparked by a slump in US housing, dragged the world's largest economies into recession and caused more than US$1 trillion of losses at financial institutions around the world.
The fund lost HK$77.9 billion on Hong Kong stocks in 2008, while the loss on other equities was HK$73.2 billion, Yam said. Bonds and other investments had a gain of HK$88.6 billion. "The global financial system remains unsettled," Yam said. "The second wave of the financial turmoil will probably be more contagious than when the crisis broke out in September, especially in emerging markets. We have a difficult year ahead."
The HKMA, Hong Kong's de facto central bank, buys and sells US dollars with money from the Exchange Fund to keep the city's currency stable. The Hong Kong dollar has been pegged to its US counterpart since 1983.
The fund lost HK$74.9 billion (US$9.7 billion) in 2008, Joseph Yam, chief executive of the Hong Kong Monetary Authority, said yesterday. It gained a record HK$142.2 billion in 2007.
Last year "was a very bad year as we encountered the financial tsunami of the century," Yam said.
The Hang Seng Index, the city's benchmark stock gauge, tumbled 48 percent last year, as the credit crisis pummeled investor confidence, Bloomberg News said. The turmoil, sparked by a slump in US housing, dragged the world's largest economies into recession and caused more than US$1 trillion of losses at financial institutions around the world.
The fund lost HK$77.9 billion on Hong Kong stocks in 2008, while the loss on other equities was HK$73.2 billion, Yam said. Bonds and other investments had a gain of HK$88.6 billion. "The global financial system remains unsettled," Yam said. "The second wave of the financial turmoil will probably be more contagious than when the crisis broke out in September, especially in emerging markets. We have a difficult year ahead."
The HKMA, Hong Kong's de facto central bank, buys and sells US dollars with money from the Exchange Fund to keep the city's currency stable. The Hong Kong dollar has been pegged to its US counterpart since 1983.
- About Us
- |
- Terms of Use
- |
-
RSS
- |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证:沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证:31120180004
- |
- 网络视听许可证:0909346
- |
- 广播电视节目制作许可证:沪字第354号
- |
- 增值电信业务经营许可证:沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.