1.
No loss to Exchange Fund through Barings episode
The Hong Kong Monetary Authority (HKMA) said today (Saturday) that there had been no loss to the Exchange Fund through the Barings episode.
The majority of the reserves of the Exchange Fund are managed in-house. Only a minor portion is being invested through a number of external managers and Barings International Investment Management Ltd. (BIIML) is one of them, a HKMA spokesperson said.
Of the portfolio managed by BIIML, 99 per cent is invested in securities and other investments that are placed with approved custodians in the name of the Exchange Fund and are segregated from that of Barings. The Exchange Fund's securities with BIIML were not at risk throughout this episode.
-
Only a very small cash element less than one per cent of the portfolio managed by BIIML - was held at Baring Brothers and Co. as working balances.
This amount, which was insignificant, was frozen during the administration.
The HKMA has now received assurances from Barings that this sum will be honoured, and interest will be paid on it for the past two weeks. ING Bank has also publicly stated that these assets will be honoured.
Note to Editors:
For further press enquiries, please contact Ms Julia Leung at 2878 8246 or pager 110040240.
End/Saturday, March 11, 1995
No comments yet.
Private notes are available after approval.