TNAG-1773-FCO40-2525-Hong-Kong-Exchange-Fund-Hong-Kong-Futures-Exchange-Limited--1988 — Page 93

CONFIDENTIAL

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INVESTMENT POLICY COMPARISON WITH GUIDELINES

27.

The currency distribution of the Fund's assets at the

year end, together with the corresponding percentage distribution as at 31 December 1986, are given below. Further details are at

Appendix II:

31.12.87

31.12.86

$'000s

%

%

Canadian dollars

2,332,547

1.96

1.30

Deutsche marks

14,315,492

12.05

14.89

Dutch guilders

4,246,885

3.57

2.75

H.K. dollars

2,621,018

2.21

2.16

Japanese yen

13,361,802

11.24

11.17

Sterling

10,303,545

8.67

4.37

Swiss francs

3,718,379

3.13

3.25

U.S. dollars

64,128,688

53.97

57.19

115,028,356

96.80

97.08

Gold

Loans

681,684

0.57

0.71

3,124,576

2.63

2.21

118,834,616

100.00

100.00

28.

If the loans to The Ka Wah Bank Limited, First Pacific

Bank Limited (see paragraph 12) and The Hong Kong Futures Guarantee

Corporation Limited (see paragraphs 13 and 14) are taken into

account, the split of assets between Hong Kong dollars and foreign

currencies at 31 December 1987 would be 4.47% and 95.53%

respectively. This compares with 3.99% and 96.01% at 31 December

Total foreign currency assets at 31 December 1987 had a Hong Kong dollar value of $113,518.0 million which represents an increase

of 33.47% over 31 December 1986.

1986.

CONFIDENTIAL