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| 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.
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| 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!!!
