Hong Kong’s Exchange Fund first-half earnings drop 37% on equity losses, weaker bond returns

Hong Kong’s Exchange Fund, managed by the Hong Kong Monetary Authority (HKMA), reports a 37% decline in first-half earnings, citing weaker returns from both bonds and Hong Kong equities. The fund’s earnings are HK$134.7 billion (about US$17.17 billion) for the half year ended in mid-2026, down from HK$214 billion in the prior year’s record half-year return. Several components point to the shift in performance: the fund’s Hong Kong stock portfolio swings to a net loss of HK$11.8 billion, compared with a net gain of HK$22.9 billion a year earlier. At the same time, bond income is softer than a year earlier, though it remains positive, with reported bond gains of HK$49.1 billion. The overall outcome reflects a combination of less favourable equity valuations and reduced bond returns. The HKMA presents the results as part of the Exchange Fund’s ongoing reporting and investment performance updates for the first half of the year.