Core Points - The Hong Kong Monetary Authority (HKMA) announced a reduction in the base rate to 4.5%, effective immediately [1] - The base rate is determined based on two data points: the lower limit of the current US federal funds rate target range plus 50 basis points, or the average of the 5-day moving average of overnight and one-month Hong Kong interbank offered rates, whichever is higher [1] - Following the US Federal Reserve's decision to lower the federal funds rate target range by 25 basis points, the lower limit plus 50 basis points is now 4.5%, while the average of the Hong Kong interbank offered rates is 2.94% [1]

Core Insights - As of August 2025, Macau's foreign exchange reserves totaled 235.4 billion MOP (29.33 billion USD), reflecting a 0.7% increase from the revised total of 233.7 billion MOP (28.91 billion USD) in July 2025 [1] - The foreign exchange reserves are approximately 11 times the currency in circulation in Macau as of the end of July 2025, and represent 87.9% of the M2 money supply in Macau [1] - The trade-weighted index for the Macanese Pataca (MOP) in August 2025 was 100.8, which is an increase of 0.62 points from the previous month, but a decrease of 2.44 points year-on-year [1] Summary by Category Foreign Exchange Reserves - The total foreign exchange reserves in Macau reached 235.4 billion MOP (29.33 billion USD) as of August 2025, marking a 0.7% increase from July 2025 [1] - This amount is equivalent to 11 times the currency in circulation in Macau as of July 2025 [1] - The reserves constitute 87.9% of the M2 money supply in Macau [1] Currency Index - The trade-weighted index for the Macanese Pataca was recorded at 100.8 in August 2025, which is a rise of 0.62 points from the previous month [1] - Year-on-year, the index has decreased by 2.44 points, indicating a depreciation of the MOP against the currencies of major trading partners [1]

在具体举措上，国家外汇管理局北京市分局提出，强化三级责任机制，压实网格化管理主体责任。辖内 授权银行通过建立专项工作小组、召开动员会等方式，及时向下属支行传达部署服贸会期间外币兑换服 务重点工作及有关要求。进一步明确分行业务主管部门加强支行管理，开展合规指导。支行主管行长主 抓落实，及时组织开展业务巡检、人员培训、备钞准备等各项工作，切实加强代兑机构管理。支行经办 人员加强与代兑机构的对接沟通，及时了解代兑机构兑换币种需求，适时增加可兑换币种，同时做好业 务指导。 同时，加大培训和巡查力度，全力保障服贸会期间外币兑换服务质量。国家外汇管理局北京市分局要 求，一是构建"理论+实操+模拟场景"多元培训体系，不断提升兑换人员服务水平。授权银行就代兑业 务办理流程、风险点、注意事项及基本问答等内容对代兑机构进行再培训；对业务办理的印章、水单等 重要资料的准备和保管情况进行再确认。通过模拟"高峰期人员分流""设备突发故障""客户兑换疑问解 答"等情景，检验工作人员的业务熟练度、服务态度及应急处理能力。 北京商报讯（记者廖蒙）9月10日—14日，2025年服贸会在北京首钢园举行。9月12日，国家外汇管理局 北京市分局指出 ...

Core Insights - The Hong Kong Monetary Authority (HKMA) reported a decrease in the foreign assets of the Exchange Fund by 52.6 billion HKD, bringing the total to 3,487.1 billion HKD as of the end of August 2025 [1] Summary by Categories Foreign Assets - The Exchange Fund's foreign assets decreased by 52.6 billion HKD in August [1] - The total foreign assets stood at 3,487.1 billion HKD at the end of August [1] Monetary Base - The monetary base was reported at 2,014.2 billion HKD, which includes certificates of indebtedness, government-issued currency notes and coins, bank system balances, and issued Exchange Fund bills and bonds [1] Private Sector Debt - The total debt owed by the Exchange Fund to the private sector in Hong Kong amounted to 329.6 billion HKD [1] External Liabilities - The total external liabilities of the Exchange Fund were reported at 31.7 billion HKD [1]

Core Insights - As of the end of August, China's foreign exchange reserves reached $332.22 billion, an increase of $29.9 billion from the end of July, marking a growth rate of 0.91% [1][3] - China's gold reserves stood at 7.402 million ounces at the end of August, with an increase of 60,000 ounces, representing the central bank's continuous accumulation of gold for the tenth consecutive month [1][4] Foreign Exchange Reserves - The increase in foreign exchange reserves is attributed to the depreciation of the US dollar index and the overall rise in global financial asset prices [3][5] - The foreign exchange reserves balance as of the end of August is the highest since January 2016, indicating improved capacity to withstand various shocks [3][5] - Current foreign exchange reserves are considered moderately sufficient, providing important support for maintaining the RMB exchange rate at a reasonable equilibrium level [3][5] Gold Reserves - In August, the expectation of interest rate cuts by the Federal Reserve led to a significant rebound in gold prices, with a cumulative increase of 3.9% for the month [5] - China's gold reserves increased by $9.9 billion to $253.8 billion, with the proportion of gold reserves to total foreign exchange reserves rising by 0.23 percentage points to 7.64%, setting a new historical high [5]

Core Insights - The Hong Kong Monetary Authority reported a decrease in the foreign exchange fund's overseas assets by 56.4 billion HKD, bringing the total to 3,539.8 billion HKD as of the end of July 2025 [1] - The monetary base is recorded at 2,042.6 billion HKD, which includes certificates of indebtedness, government-issued currency notes and coins, bank reserves, and issued foreign exchange fund bills and bonds [1] - The total claims of the foreign exchange fund on the private sector in Hong Kong amount to 317.6 billion HKD, while total external liabilities stand at 32.6 billion HKD [1]

Core Viewpoint - The Hong Kong Monetary Authority (HKMA) has activated the "weak side convertibility guarantee" at a rate of 7.85, indicating increased pressure on the Hong Kong dollar and the need for intervention in the currency market [1] Group 1: Currency Intervention - On August 14, after the New York trading session, the HKMA sold 3.376 billion HKD to the market, buying USD in return [1] - The last instance of triggering the 7.85 weak side convertibility guarantee occurred on August 13, where the HKMA absorbed 7.065 billion HKD [1] - Since June, the HKMA has intervened 12 times, absorbing a total of 119.97 billion HKD, which is equivalent to 92.7% of the hot money inflow in May [1] Group 2: Market Impact - The bank system's aggregate balance will decrease to 53.716 billion HKD on August 15 due to these interventions [1]

Core Viewpoint - The Hong Kong dollar has weakened, triggering the weak-side convertibility guarantee at 7.85 per US dollar, leading to the Hong Kong Monetary Authority (HKMA) intervening in the market by selling US dollars and buying Hong Kong dollars [1] Group 1: Currency Intervention - On August 13, after the New York trading session, the HKMA sold 70.65 billion HKD to the market, resulting in a decrease of the banking system's balance to 570.91 billion HKD on August 14 [1] - This marks the 11th time since June that the HKMA has intervened, accumulating a total of 1,165.94 billion HKD, which is approximately 90% of the capital inflow seen in May [1] Group 2: Historical Context - The last time the weak-side convertibility guarantee was triggered was on August 6, when the HKMA absorbed 84.39 billion HKD [1] - In early May, the Hong Kong dollar had triggered the strong-side convertibility guarantee multiple times, with a total inflow of 1,294 billion HKD, indicating a significant shift in the currency's strength over the past two months [1]

Core Viewpoint - The Hong Kong Monetary Authority (HKMA) intervened in the currency market for the first time in 2023 to maintain the stability of the Hong Kong dollar, which triggered the "weak-side convertibility guarantee" at 7.85 HKD per USD [1] Currency Mechanism - The Hong Kong dollar operates under a linked exchange rate system established in 1983, with a normal fluctuation range between 7.75 (strong-side guarantee) and 7.85 (weak-side guarantee) [1] - When the exchange rate hits the "strong-side guarantee," the HKMA buys USD and sells HKD to stabilize the rate at or below 7.75 [1] - Conversely, when the "weak-side guarantee" is triggered, the HKMA sells USD and buys HKD to maintain the rate at or above 7.85 [1] Market Intervention - On June 26, the HKMA bought a total of 9.42 billion HKD to stabilize the currency, resulting in a reduction of the banking system's aggregate balance to 164.098 billion HKD by June 27 [1] - In early May, the Hong Kong dollar was strong, triggering the "strong-side guarantee" four times, leading the HKMA to inject approximately 129 billion HKD into the market [1]

Core Viewpoint - The Hong Kong Monetary Authority (HKMA) reported a significant increase in investment income for the first half of 2025, reaching HKD 194.4 billion, a rise of 87% compared to HKD 104 billion in the same period of 2024, driven by improved global market conditions, optimized asset allocation strategies, and currency fluctuations [1] Income Composition and Core Drivers - The primary sources of investment income include: - Bond investment income of HKD 75.3 billion, accounting for 39%, mainly from interest income on U.S. Treasury and other high-rated bonds [2] - Total stock investment income of HKD 50.3 billion, with HKD 22.9 billion from Hong Kong stocks and HKD 27.4 billion from other stocks [2] - The Hang Seng Index rose approximately 20% in the first half of 2025, attracting capital inflows into the Hong Kong stock market, while global major stock markets also saw gains due to easing inflation expectations [3] - Foreign exchange valuation adjustments contributed HKD 56.8 billion, making it the largest single contributor, as the U.S. dollar weakened against major currencies [3] - Other investment income totaled HKD 12 billion, including dividends and appreciation from private equity and real estate [2] Asset Scale and Financial Status - As of June 30, 2025, the total assets of the foreign exchange fund reached HKD 429.71 billion, an increase of HKD 21.61 billion from the end of 2024, with cumulative surplus rising to HKD 87.79 billion [5] - The growth reflects the cumulative effect of investment income and positive capital inflows [6] Investment Strategy Adjustments and Long-term Layout - The HKMA has been optimizing asset allocation, reducing the proportion of U.S. dollar assets from over 90% to 79%, and shortening the duration of U.S. Treasury holdings to mitigate interest rate volatility risks [7] - Long-term growth strategies include investments in private equity and real estate, contributing approximately HKD 12 billion in income in the first quarter of 2025 [8] Response to Market Uncertainties - Despite strong performance in the first half of 2025, the HKMA emphasizes the need to remain vigilant against geopolitical risks, tariff disputes, and potential shifts in Federal Reserve policies [9] - The foreign exchange fund will maintain high liquidity and further diversify investments into non-U.S. dollar assets to address potential market volatility [9] - The dynamic adjustment capability of the foreign exchange fund will be crucial for continued value creation in a complex international environment [10]