TNAG-1773-FCO40-2525-Hong-Kong-Exchange-Fund-Hong-Kong-Futures-Exchange-Limited--1988 — Page 127

CONFIDENTIAL

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21. INVESTMENT GAINS AND LOSSES

22.

1987

HK$ '000s

1986 HK$'000s

Net gain (loss) on investment

transactions

(147,554)

252,019

Net gain (loss) on year end

revaluation of investments

(778,133)

315,358

Gain on year end revaluation

of gold

131,523

101,648

(794,164)

669,025

EXCHANGE GAINS AND LOSSES

Realised gain (loss)

Unrealised gain

23.

EXCHANGE EQUALISATION RESERVE

1987 HK$'000s

1986 HK$'000s

(353,100)

44,370

9,880,723

6,109,417

9,527,623

6,153,787

=

A transfer to the credit of the reserve of $2,323,704,445.78 being the unrealised gain for the first half of 1987 was ratified at the meeting of the Exchange Fund Advisory Committee held on 6 November 1987. A further unrealised gain of $7,557,017,894.28 in respect of the second half of 1987 has been provided for in the accounts, making a total of $9,880,722,340.06 for 1987. This provision, which includes an unrealized exchange gain of $240,110,527.06 on forward foreign exchange contracts outstanding as at the balance sheet date, (see paragraph (b) of the accounting policies on page 28) is subject to subsequent ratification by the Committee.

CONFIDENTIAL