The first quarter of the Exchange Fund earned 57.1 billion six and a half years
NEW YORK (Reuters) – The global financial market sentiment improved in the first quarter of this year, boosting the investment income of the Exchange Fund by more than 57.1 billion yuan, the best performance in six and a half years. Among the Hong Kong stocks and other stocks, Are made by eclipse. But the Hong Kong Monetary Authority President Chen Delin pointed out that there are still many uncertainties in the global financial market, not only the first quarter of the data forecast annual performance.
Hong Kong and other stocks are making changes
The HKMA announced yesterday that the first quarter of the Exchange Fund’s investment income reached 57.1 billion yuan, a substantial increase over the same period last year 1.25 times, and recovered the fourth quarter of last year, the loss of 30.4 billion yuan lost ground. Among the categories, Hong Kong stocks and other shares earned $ 14.3 billion and $ 24.5 billion in the first quarter respectively, compared with $ 6.2 billion and $ 9.9 billion in the first quarter of last year. In terms of bonds, investment income for the first quarter was $ 6.4 billion, down 74% year-on-year. Rather than the dollar and Hong Kong dollar foreign exchange assets, the valuation is raised to 11.9 billion.
The first quarter of the performance, even if not included in private equity and real estate and other “other investment” performance of the project, has recorded the best results since the third quarter of 2010, when the market is still benefiting from the early quantitative easing policy Atmosphere, and longing for the upcoming second round of width.
Chen Weilin: single-season data difficult to assess the annual performance of the HKMA Vice President Yu Weiyuan said the first quarter performance mainly benefited from the global financial market to better, especially the funds on the Chinese economic worries diminished, especially for Hong Kong stocks. On the other hand, the European political risk is reduced and the euro exchange rate has stabilized. This has led to a decline in the dollar index, which has led to an increase in the valuation of the non-US dollar and Hong Kong dollar assets of the Exchange Fund.
Although the first quarter of outstanding performance, but Chen Delin means that the results can not be only the first quarter of the annual rate to estimate the performance of the year. And the global economy there are still many uncertainties, including the US President Trump advocated trade protectionism, while the European economy is improved, the unemployment rate is still high, the Middle East and the Korean Peninsula geopolitical risks continue to rise, so the future trend of the stock market Unpredictable. In line with the US interest rate cycle, the Exchange Fund has made defensive measures to meet the bond market volatility, including shortening the holdings of bonds and holdings of cash.
Analysis optimistic about the performance of the next few quarters
Australia’s wealth management investment director Chen Junwen pointed out that this year’s market environment is beneficial to the Exchange Fund. He said that the US stocks and Hong Kong stocks continued to make good, but some investors still tend to hedge, not dare to look good, so the bond market also has a modest increase, coupled with the euro and the yuan stabilized, the non-dollar assets of the Exchange Fund favorable. He estimated that unless the US interest rate is expected to surge, or Trump end of the implementation of tax cuts, resulting in a sharp rise in the dollar, otherwise the Exchange Fund will continue to show good performance in the next few quarters.