TNAG-1773-FCO40-2525-Hong-Kong-Exchange-Fund-Hong-Kong-Futures-Exchange-Limited--1988 — Page 80

CONFIDENTIAL

The Exchange Fund

Report and Accounts for the year ended 31 December 1987

Contents

Report

Page

Foreign Exchange Markets 1987

Hong Kong Dollar

Bank Rescue Operations

The Hong Kong Futures Guarantee Corporation Limited

Exchange Market Intervention

1

2

7

7

8

Exchange Fund Borrowing Limit

9

Money Market Operations

9

Investment Results for 1987

10

Investment Policy

-

Comparison with Guidelines

13

Notes and Coins

17

Accounts

Balance Sheet

Income and Expenditure Account

Accumulated Surplus Account

Exchange Equalisation Reserve

Investment Equalisation Reserve

23

24

25

26

26

Notes on the Accounts (including accounting policies) 27

Appendices

Appendix I : Investment Policy

48

Appendix II : Currency Distribution Statement

53

Appendix III: Maturity Spread Statement

54

Appendix IV : Distribution of Assets Statement

Appendix V : Country Risk Statement

55

Appendix VI

: Summary of Foreign Currency

Bonds and Notes

550

56

57

CONFIDENTIAL