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Hong Kong Exchange Fund first-half earnings fall 37% as equities slump

First-half earnings totaled HK$134.7 billion, and the fund’s Hong Kong stock portfolio swung to a HK$11.8 billion loss from a year earlier gain.

Reported · Written up by our desk · China

Hong Kong’s Exchange Fund, the currency defense war chest used to support the local dollar, reported a 37.0% decline in first-half earnings, the Hong Kong Monetary Authority said, citing losses in Hong Kong equities and softer bond returns.

Earnings came in at HK$134.7 billion (US$17.2 billion), down from a record HK$214 billion in the first half of 2025. The fund’s Hong Kong stock portfolio shifted to a HK$11.8 billion loss, compared with a HK$22.9 billion gain a year earlier, according to SCMP Economy.

The performance backdrop also reflected weakness in local markets. The Hang Seng Index fell 11.0% over the first six months of 2026, with concerns tied to rising interest rates and corporate earnings.

SCMP Economy reported the decline alongside HKMA’s update as the Exchange Fund navigates a mix of equity drawdowns and reduced returns from its bond holdings.

Latest closeHang Seng 24,130.50 ▼0.6%

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