Fri, Oct 9, 2015
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. Investing - AQR Capital and Renaissance Technologies raise stakes in Southwest Airlines[more]

    From In the previous part of this series, we saw how institutional investors played Southwest Airlines (LUV) in 2Q15. Now let’s move on to the trades executed by key hedge funds in Southwest Airlines over the same period. … Most of the hedge funds that had significant exposu

  2. Manager Profile - Pimco alternative funds flourish as 30-year bond rally fades[more]

    From Inside Pacific Investment Management Co., the bond behemoth that lost two chief investment officers last year and saw almost $500 billion of client money leave, a hidden profit engine is easing some of the pain. For more than a decade, Newport Beach, California-based Pimco has qu

  3. Niche Investing - Art investment funds: Attracting institutional and other new investors[more]

    From The Deloitte/ArtTactic Art and Finance Report 2014 (the "Art and Finance Report") noted that the "global art investment fund market was estimated to be worth at least $1.26 billion in the first half of 2014." This seems almost inconsequential when juxtaposed with the $54 billion of

  4. Hedge fund Barnegat survives September’s market selloff[more]

    Komfie Manalo, Opalesque Asia: Bob Treue’s $679 million Barnegat Fund proved resilient after another month of market letdown as the hedge fund gained 2.2% last month, bringing its year-to-date gains to 2.8%. Treue said in his monthly report to i

  5. …And Finally - Japanese men want upgrade on their virtual girlfriends[more]

    From Five years after News of the Weird mentioned it, Japan's Love Plus virtual-girlfriend app is more popular than ever, serving a growing segment of the country's lonely males -- those beyond peak marital years and resigned to artificial "relationships." Love Plus models (Rinko