Editorial | HKMA deserves praise for fund’s performance amid global tensions
Hong Kong’s resurgence as an IPO destination has helped the city’s de facto central bank achieve record returns, boosting fiscal reserves
Thanks to positive investment sentiment and a hot initial public offering (IPO) market, Hong Kong has been among the world’s best performers this year amid a global bull run. That performance came despite high tensions in global politics and a universal tariff war launched by the United States.
Even with lower gains in the third quarter, cumulative earnings for the first nine months of the year rose 14.6 per cent to HK$274 billion (US$35.3 billion).
A diversified portfolio has helped the fund boost its war chest. It might moderate gains but help minimise losses. Besides the equity bull run, the fund also gained in bonds, currencies and overseas real estate and some commercial projects.
Being the world’s largest IPO market for the first time since 2019 means international capital is rolling into Hong Kong for a piece of the action. That has propelled the local market from being a laggard in recent years to being a big winner this year, helping fuel profits for the Exchange Fund.
The nine-month result exceeded last year’s HK$239.1 billion, which was itself a record, and it has already surpassed the full-year record of HK$264 billion reported in 2017.