Tuesday, 3 November 2015

Fact of the Day: Hong Kong Loses HK$63.8 Billion

Heavy investment in equity helped plunge the Exchange Fund's value
The Exchange Fund, which is managed by the Hong Kong Monetary Authority and invests in stocks, bonds, property and cash, lost HK$63.8 billion in the third quarter, its biggest quarterly loss in history.

The fund, which defends the HK dollar, had gained HK$18.7 billion in the second quarter.

What happened?!

Equity investments lost HK$64.8 billion from July to September, and foreign-exchange related investments also lost HK$10.8 billion.

Only bond investments gained HK$11.8 billion.

Monetary Authority Norman Chan blames loss on volatility
The Monetary Authority chief executive Norman Chan Tak-lam blamed volatility in the markets for the plunge, and analysts add the strong US dollar coupled with a weaker yuan may have also contributed to the fund's low performance.

Either way the loss is equal to over HK$8,000 per person that we're not going to get back anytime soon.

Uh we really hope Chan knows what he's doing... our hard-earned taxpayer dollars are going into this fund!!!

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