HONG KONG, Jan. 29 (Xinhua) -- Hong Kong's Exchange Fund recorded an investment income of 13.9 billion HK dollars (1.78 billion U.S. dollars) in 2018, compared with the record high of 252 billion HK dollars in 2017, according to the Hong Kong Monetary Authority (HKMA) on Tuesday.
The Exchange Fund recorded an investment return rate of 0.3 percent in 2018, compared with 7.1 percent in 2017.
Norman Chan, chief executive of the HKMA, said several risk factors, including the pace of interest rate normalization in the United States, the negative impact of the U.S. government's foreign trade policy and protectionism on global trade, and geopolitical risks, materialized one after another during the year, and there were considerable volatilities and adjustments in global financial markets.
He said despite a combination of falling equity prices, rising bond yields and a strong U.S. dollar, the Exchange Fund managed to record a positive investment income of 13.9 billion HK dollars in 2018, instead of a loss.
Looking ahead, Chan said it is very likely that the investment environment in 2019 will remain as unpredictable and difficult as in 2018.
The balance sheet shows the total assets of the Exchange Fund rose by 44.1 billion HK dollars, from 4,015.3 billion HK dollars at the end of 2017 to 4,059.4 billion HK dollars at the end of 2018. (1 U.S. dollar equals to 7.85 HK dollars)
