Wed, Oct 26, 2016
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hong Kong’s foreign reserve reaches $258.8bn in March, to diversify into hedge funds, PE

Wednesday, April 14, 2010
Opalesque Industry Update – Hong Kong’s foreign dollar reserves rose to $258.8bn in March, up by $600m compared to the February figure. The reserves have given the Hong Kong Monetary Authority (the special administrative region’s de facto central bank) more flexibility to invest in riskier portfolios.

In a statement, HKMA said total foreign currency reserve assets represent over nine times the currency in circulation or about 56% of Hong Kong dollar M3. Hong Kong is the world’s seventh largest holder of foreign currency reserves based on the latest published figures, after Mainland China, Japan, Russia, Taiwan, India and Korea.

A report by showed that at least three private equity firms, including Kohlberg Kravis Roberts (KKR), Bain and Blackstone received investments from or held talks with HKMA. The bank is even considering investing in the mainland.

According to, HKMA’s foray into alternative investments is a major shift of policy since Norman Chan Tak- lam took over the helm of the bank. His predecessor, Joseph Yam Chi-kwong, did not even considered alternative investments during his term. described HKMA’s exposures as conservative and the bank has traditionally invested its reserves in safe liquid investments. quoted an HKMA spokesperson as saying: "The authority has an ongoing review of Exchange Fund investment principles. But as it is market sensitive we would not comment on its daily operations."

Last year, the Exchange Fund posted a total HK$106.7bn ($13.75bn) investment income, or a 5.9% investment return amid strong rebound in global equities.

Hong Kong’s economy has also shown positive grown in the first two months of 2010 after overall export value rose 23% year-on-year, according to Export value of domestic goods jumped 21% on the back of stabilizing global economy. The city is expected to continue to experience double-digit growth in its export sector in the first half of this year. – Precy Dumlao

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. M&A - U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga, Hedge fund Parvus shows hand, toppling William Hill merger deal[more]

    U.S. hedge fund HarbourVest is shock winner in the £1.1bn SVG Capital takeover saga From The fierce battle to buy Britain's biggest private equity group has come to an unexpected conclusion, with the original bidder walking away with the prize. SVG Capital has agreed

  2. Marc Lasry: Energy is still a phenomenal opportunity[more]

    From Distressed debt specialist Marc Lasry said energy debt is still a "phenomenal opportunity" because investors can get "massively overpaid" for the risk they take on. There are "huge opportunities" in the energy sector especially in restructurings, the Avenue Capital Group CEO said Tues

  3. Opalesque Exclusive: Ex-SAC manager re-emerges with market neutral hedge fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: A manager re-emerged from the SAC battleground last year to launch his own hedge fund under the umbrella of New York-based investment firm Endicott Group.

  4. North America - Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation, Billionaire hedge fund titans Dinan, Lasry on election, markets and best investment ideas[more]

    Hedge-fund manager Kyle Bass says the U.S. is on track for stagflation From Kyle Bass, founder of Hayman Capital Management, on Wednesday warned that the U.S. is headed toward so-called stagflation. Stagflation is typically described as persistently high inflation and hi

  5. David Einhorn speaks on passive investing, Mylan, his cheapest stock, the Fed[more]

    From Greenlight Capital hedge fund manager David Einhorn (Trades, Portfolio) joined nine other famed investors on Tuesday to talk about stocks at the annual Great Investors’ Best Ideas Investment Symposium in Dallas. Presenters at the annual conference typically pitch one or severa