Hong Kong Exchange Fund loses US$3.3 billion in Q2

Posted profit of US$5.0 billion in Q2 2012.

The Hong Kong Monetary Authority said this means the Hong Kong's Exchange Fund, which is used to back the Hong Kong dollar posted a US$3.2 billion investment loss in the second quarter after the first quarter investment income was adjusted to US$2.4 billion.

"Early this year when we announced the results of the Exchange Fund in 2012, we pointed out that the global financial markets would be facing many uncertainties in the year ahead. As it turned out, the global equities, bonds and foreign exchange markets all went through considerable fluctuations in the first half of the year,” said HKMA.

It noted the bond market, in particular, was highly volatile in June.