TNAG-1773-FCO40-2525-Hong-Kong-Exchange-Fund-Hong-Kong-Futures-Exchange-Limited--1988 — Page 92

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24.

Interest payments in 1987 were $1,183.2 million compared

with $878.6 million in 1986. The average debt certificates

outstanding rose to $28.1 billion compared with $20.4 billion in

1986, while the interest rates paid on these certificates fell

slightly on average (1987: 4.21%, 1986: 4.33%). As a result, the amount of interest paid on the certificates increased by $304.6

million compared with 1986.

25.

Investment losses, resulting from sales and revaluations,

amounted to $794.2 million in 1987 compared with investment gains of

$669.0 million in 1986. This figure includes a realised loss of

$147.6 million from sales and a net unrealised loss of $646.6

million on year end revaluations.

26.

Exchange gains amounted to $9,527.6 million in 1987

compared with $6,153.8 million in 1986. This figure includes a

realised exchange loss of $353.1 million and an unrealised exchange

gain of $9,880.7 million due to the weakness of the Hong Kong dollar

against all currencies, other than the U.S. dollar. Additional

provision has been made in 1987 in respect of an unrealized exchange

gain of $240.1 million on forward foreign exchange contracts

outstanding as at the balance sheet date.

CONFIDENTIAL