Photo by Simon Zhu on Unsplash

Exchange Fund posts investment loss of $202.4b in 2022

It also ended the year with a negative investment return of 4.4%.

Hong Kong’s primary investment arm recorded an investment loss of $202.4 billion in 2022, the Monetary Authority announced.

The Exchange Fund also had a negative investment return of 4.4% for the year.

 Monetary Authority Chief Executive Eddie Yue said 2022 was an “exceptionally volatile year” for the financial markets, given the effects of the Russia-Ukraine conflict, the COVID pandemic, and Fed hikes.

“This investment environment not only undermined the conventional complementary effects of bonds and equities but has also marked 2022 as the only year in almost half a century during which returns from equities, bonds and major currencies against the US dollar all recorded negative returns simultaneously,” Yue said.
Based on the abridged balance sheet, the fund’s total assets also decreased by $559.1b, from $4,570.2b at the end of 2021 to $4,011.1b at the end of 2022. The accumulated surplus stood at $555.5b by end-December 2022.
In 2023, Yue  expects financial markets to continue “to face significant uncertainties and asset prices are expected to remain volatile.”
“The monetary policies of major central banks will continue to dominate the investment outlook, and financial markets will pay close attention to peak policy rates set by major central banks. The path of inflation is key to all these developments,” he said. 
“Recent minutes of the Federal Open Market Committee meetings also pointed out that containing inflation remains the policy focus, and it is anticipated that ongoing increases in the target range for the federal funds rate would be appropriate,” he added.
With these uncertainties, Yue said asset prices will inevitably experience sharp swings or adjustments if the actual situation deviates substantially from market expectations.

Follow the link for more news on

Join Hong Kong Business community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!


The ChatGPT effect? Investors bet big on deep tech startups 
An expert from Velocity Ventures believes new startups will build their business models on the chatbot.
Hong Kong's Hottest Startups of 2023
Startups with "disruptive applications in the Web 3.0 space" dominate.
Experts rally for change in legal industry’s ‘billable system’ 
A report from UC Hastings College of the Law stated that  "a most-hours-wins system disproportionately disadvantages women partners.”