HKMA remains vigilant in 'unstable' environment
Value of Exchange Fund's private equity and real estate investments totalled HK$88.6b last year
Hong Kong and emerging markets will likely face continued capital outflows given tapering by the US Federal Reserve and the gradual normalisation of interest rates from a very low level, the top official of the Hong Kong Monetary Authority said.
"In the face of the expected unstable financial and investment environment in 2014, the HKMA will continue to closely monitor market developments to help safeguard monetary stability, and require banks to step up the management of interest rate, liquidity and credit risks," HKMA chief executive Norman Chan tak-lam wrote in the annual report,
The HKMA will continue to closely monitor market developments
Chan, who earned 5.89 per cent more last year to take a total of HK$9.96 million home, said the authority would continue to prudently manage the Exchange Fund, which earned HK$81.2 billion.
The Exchange Fund's investments include properties in big cities outside Hong Kong.
The authority also set up two more fully-owned subsidiaries in Real Horizon Investment and Real Summit Investment in 2013 for property investments, bringing to three the number of wholly owned units in the property sector for the Exchange Fund, according to its annual report released yesterday.
At the end of last year, the market value of property holdings under these three subsidiaries amounted to HK$17.6 billion, up from HK$16.3 billion in 2012.
