Exchange Fund Abridged Balance Sheet and Currency Board Account
The following is issued on behalf of the Hong Kong Monetary Authority:
The Hong Kong Monetary Authority (HKMA) announced today (October 31) that the total assets of the Exchange Fund amounted to HK$4,133.9 billion as at September 30, 2024, HK$152.4 billion higher than that at the end of August 2024. Hong Kong dollar assets increased by HK$113.9 billion and foreign currency assets increased by HK$38.5 billion.
The rise in Hong Kong dollar assets was mainly due to the increase in Exchange Fund Bills and Notes issued but not yet settled at month end and mark-to-market revaluation of Hong Kong equities. The rise in foreign currency assets was mainly due to an increase in the month-end balances of unsettled purchase of securities, mark-to-market revaluation of investments and interest income from investments, which were partly offset by withdrawals of Fiscal Reserves placements.
The Currency Board Account shows that the Monetary Base at the end of September 2024 was HK$1,941.4 billion, increased by HK$6.5 billion, or 0.3 per cent, from the end of August 2024. The increase was mainly due to amortisation of discount on Exchange Fund Bills and Notes issued and the increase in the outstanding amount of Certificates of Indebtedness.
The amount of Backing Assets decreased by HK$43.6 billion, or 2.0 per cent, to HK$2,129.4 billion at the end of September 2024. The decrease was mainly attributable to the transfer of assets out of the Backing Portfolio to the Investment Portfolio in accordance with the arrangement approved by the Exchange Fund Advisory Committee and mark-to-market revaluation of investments, which were partly offset by interest income from investments. The Backing Ratio decreased from 112.31 per cent at the end of August 2024 to 109.68 per cent at the end of September 2024.
****************************************************************
At present, four press releases relating to the Exchange Fund's data are issued by the HKMA each month. Three of these releases are issued to disseminate monetary data in accordance with the International Monetary Fund's Special Data Dissemination Standard (SDDS). The fourth press release, on the Exchange Fund's Abridged Balance Sheet and Currency Board Account, is made in accordance with the HKMA's policy of maintaining a high level of transparency. For the month of October 2024, the scheduled dates for issuing the press releases are as follows:
October 7
(Issued) |
SDDS International Reserves
(Hong Kong's Latest Foreign Currency Reserve Assets Figures) |
October 14
(Issued) |
SDDS Analytical Accounts of the Central Bank
(Analytical Accounts of the Exchange Fund) |
October 31
|
SDDS Template on International Reserves and
Foreign Currency Liquidity |
October 31
|
Exchange Fund Abridged Balance Sheet and
Currency Board Account |
Advance estimates on Gross Domestic Product for third quarter of 2024
The Census and Statistics Department (C&SD) released today (October 31) the advance estimates on Gross Domestic Product (GDP) for the third quarter of 2024.
According to the advance estimates, GDP increased by 1.8% in real terms in the third quarter of 2024 over a year earlier, compared with the increase of 3.2% in the second quarter. For the first three quarters of 2024 as a whole, GDP increased by 2.6% in real terms over a year earlier.
Analysed by major GDP component, private consumption expenditure decreased by 1.4% in real terms in the third quarter of 2024 from a year earlier, compared with the decrease of 1.6% in the second quarter.
Government consumption expenditure measured in national accounts terms recorded an increase of 2.1% in real terms in the third quarter of 2024 over a year earlier, compared with the increase of 2.2% in the second quarter.
Gross domestic fixed capital formation grew by 3.7% in real terms in the third quarter of 2024 over a year earlier, following the increase of 4.1% in the second quarter.
Over the same period, total exports of goods measured in national accounts terms recorded an increase of 3.9% in real terms over a year earlier, moderated from the increase of 7.5% in the second quarter. Imports of goods measured in national accounts terms grew by 2.6% in real terms in the third quarter of 2024, compared with the increase of 3.4% in the second quarter.
Exports of services rose by 2.4% in real terms in the third quarter of 2024 over a year earlier, compared with the increase of 1.1% in the second quarter. Imports of services increased by 8.2% in real terms in the third quarter of 2024, after the increase of 12.3% in the second quarter.
On a seasonally adjusted quarter-to-quarter comparison basis, GDP decreased by 1.1% in real terms in the third quarter of 2024 when compared with the second quarter.
Commentary
A Government spokesman said that the Hong Kong economy continued to expand, though at a moderated pace, in the third quarter of 2024 over a year earlier. According to the advance estimates, real GDP grew by 1.8% year-on-year in the third quarter. For the first three quarters as a whole, real GDP grew by 2.6% over a year earlier. On a seasonally adjusted quarter-to-quarter basis, real GDP declined by 1.1% in the third quarter.
Analysed by major expenditure component, total exports of goods saw decelerated year-on-year growth alongside softening economic growth in some major markets. Exports of services continued to record a mild increase, supported by increasing cross-border economic activities. Overall investment expenditure rose further in tandem with the overall economic growth. However, private consumption expenditure continued to decline amid the change in residents' consumption patterns.
Looking ahead, the economy should continue to grow in the remainder of the year. While global economic uncertainties and trade conflicts may affect Hong Kong's exports of goods, monetary easing across major central banks and an improved outlook for the Mainland economy following the recent introduction of a wide range of stimulus measures would help support sentiment and activities in the domestic market. Specifically, gradually easing financial conditions should bode well for fixed asset investment. A possible easing of the Hong Kong dollar alongside the US dollar, coupled with the Central Government's various measures benefitting Hong Kong, the SAR Government's various initiatives to boost market sentiment and increasing employment earnings are conducive to spending by both residents and visitors in the domestic market, though the change in their consumption patterns will continue to pose challenges.
The Policy Address has set out a range of strong measures on economic development, consolidating and enhancing Hong Kong's traditional industries on the one hand while actively exploring new growth areas. On the financial front, the Policy Address announced to develop Hong Kong into an international gold trading market with a view to further consolidating Hong Kong’s status as an international financial centre. On the shipping side, the Policy Address announced to establish a commodity trading ecosystem, driving maritime services and promoting the development of related financial and professional services such as hedging activities of related futures products. In respect of the trade sector, the Government will strive to establish a high value-added supply chain service centre and attract Mainland and overseas enterprises to set up their headquarters or corporate divisions in Hong Kong. The Policy Address also reduced the import duty on liquor to promote liquor trade and boost the development of related high value-added industries. In addition, on developing new quality productive forces, the Policy Address announced measures such as the establishment of a $10 billion Innovation and Technology Industry-Oriented Fund and the development of low-altitude economy. The Government will implement various initiatives in the Policy Address in full steam so as to create new impetus for Hong Kong's economic development.
The revised figures on GDP and more detailed statistics for the third quarter of 2024, as well as the revised GDP forecast for 2024, will be released on November 15, 2024.
Further information
The year-on-year percentage changes of GDP and selected major expenditure components in real terms from the third quarter of 2023 to the third quarter of 2024 are shown in Table 1.
When more data become available, the C&SD will compile revised figures on GDP. The revised figures on GDP and more detailed statistics for the third quarter of 2024 will be released at the C&SD website (www.censtatd.gov.hk/en/scode250.html) and the Gross Domestic Product by Expenditure Component report (www.censtatd.gov.hk/en/EIndexbySubject.html?pcode=B1030001&scode=250) on November 15, 2024.
For enquiries about statistics on GDP by expenditure component, please contact the National Income Branch (1) of the C&SD (Tel: 2582 5077 or email: gdp-e@censtatd.gov.hk).
