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HKMA 1995 Annual Report published

The 1995 Annual Report of the Hong Kong Monetary Authority (HKMA) is published and tabled in the Legislative Council today (Wednesday).

In line with the policy of increasing transparency, the Report contains more detailed information on the balance sheet and the income/expenditure account of the Exchange Fund.

HKMA is disclosing more detailed breakdown of the Fund's assets and liabilities, including the amounts in each type of investment instrument, the types of investment income, off balance sheet items, as well as the foreign currency mix held in the Exchange Fund.

"Greater disclosure is in line with our policy of increasing transparency and accountability," said Chief Executive of HKMA, Mr Joseph Yam.

"We have come a long way since 1992 when accounts of the Exchange Fund were first revealed."

HKMA also announced today that the foreign currency assets of the Exchange Fund stood at US$59.84 billion as at the end of March, representing a 4.7 per cent increase from end-December 1995. (Detailed comparison with previous years is attached.)

In the Annual Report, Mr Yam presents an overview of major events in 1995 in his Chief Executive's Report.

"The year 1995 was a busy and fruitful one for the HKMA. There was an abundance of events overseas with implications for the monetary and banking systems of Hong Kong and which at the time required our close attention.

"Domestically, we continued to devote considerable effort to strengthen our supervisory framework and our market infrastructure in order to sustain Hong Kong's development as an international financial centre," he said.

The Report highlights the investment returns of the Exchange Fund in 1995.

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"The year 1995 was exceptionally good for bonds of all maturities Exchange Fund shared fully in this benign and favourable environment, and the accumulated surplus of the Fund increased by HK$34.3 billion, the largest ever increase in one year in the history of the Fund," said Mr Yam.