CONFIDENTIAL

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49

Minimum

3.

Hong Kong

at

a

dollar

asset level

Foreign currency assets

-

level of

providing

the

should be maintained

of 15% or more of annual imports,

purchase of foreign currency to

maintain this level is consistent with the use of

the Fund to regulate the exchange value of the Hong

Kong dollar and providing account is taken of the

need to retain sufficient Hong Kong dollars to meet

foreseeable demand for the redemption of placement

receipts issued to the Treasury.

6.

Asset

maturity

spread

(a)

The Fund should be

following range of maturities:

cash, bank deposits,

and investments

maturing within

6 months.

invested within the

LIMITS

Not less than 25%

of the funds

directly managed

by the Office of the

Exchange Fund. No

limit for funds

under management

by discretionary

managers.

(b)

investments with a

maturity exceeding 5 years but not

exceeding 10 years.

Not more than 10%

of the funds

directly managed by

the Office of the

Exchange Fund. No

limit for funds

under management

by discretionary

managers.

CONFIDENTIAL

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