Hong Kong Exchange Fund total assets stood at 1.03 trillion HK dollars (132 billion US dollars) in August, 18 billion HK dollars higher than in July.

According to a government press release Thursday, foreign currency assets and Hong Kong dollar assets rose by 10.5 billion HK dollars and 7.5 billion HK dollars, respectively.

The growth in foreign currency assets was mainly attributed to income from foreign currency assets, valuation gains on foreign currency investments and an increase in securities purchased but settled in the following month, which were partly offset by sale of foreign currencies for Hong Kong dollars.

The increase in Hong Kong dollar assets was mainly due to a hike in bank borrowings, the purchase of Hong Kong dollars from foreign currencies and valuation gains in the market value of Hong Kong equities held by the Exchange Fund.

These increases were partly offset by fiscal drawdowns and a decrease in the balance of the banking system.

Source: Xinhua