CONFIDENTIAL
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EXCHANGE FUND INVESTMENT POLICY
APPENDIX I
The investment policy is set out below. A list of exceptions to the policy, endorsed by the Exchange Fund Advisory
Committee, is at page 53.
Objectives
1. The main objectives are as follows:
(a)
Distribution
of assets
to maintain sufficient liquidity to provide
adequate cash for the redemption of
certificates of indebtedness and placement
receipts and to provide funds for regulating the exchange value of the Hong Kong dollar;
(b)
to
obtain the
maximum
investment return
.(c)
available and to provide concomitant
investment safety;
to safeguard the Hong Kong dollar value of the
Fund's foreign currency assets.
2. As a general guideline, the currency spread
of assets not
denominated
in Hong Kong dollars
should be:-
US dollars
Gold
40 - 100%
2-1/2%
Other currencies
balance
CONFIDENTIAL