Core Insights - The Hong Kong Monetary Authority reported that as of January 31, 2026, the total assets of the foreign exchange fund reached HKD 42,856 billion, an increase of HKD 1,342 billion compared to the end of December 2025 [1] Group 1: Foreign Currency Assets - Foreign currency assets increased by HKD 1,070 billion, primarily due to the rise in the month-end balance of purchased but unsettled securities, interest income, and market revaluation of investments [1] - The increase in foreign currency assets was also supported by the issuance of liability certificates [1] Group 2: Hong Kong Dollar Assets - Hong Kong dollar assets rose by HKD 272 billion, mainly driven by an increase in bank deposits and the market revaluation of Hong Kong stocks [1] Group 3: Monetary Base - The monetary base as of the end of January 2026 was HKD 20,587 billion, reflecting a growth of HKD 187 billion, or 0.9%, compared to the end of December 2025 [1] - The growth in the monetary base was attributed to seasonal demand for banknotes during the Lunar New Year, leading to an increase in the total amount of liability certificates [1] Group 4: Supporting Assets - The total amount of supporting assets increased by HKD 289 billion to HKD 22,798 billion, representing a growth of 1.3% [1] - The rise in supporting assets was mainly due to the issuance of liability certificates, interest income from investments, and market revaluation of investments [1] - The supporting ratio improved from 110.34% at the end of December 2025 to 110.74% at the end of January 2026 [1]

Core Insights - The Hong Kong Monetary Authority (HKMA) announced the "FinTech 2030" initiative, focusing on four key areas and over 40 specific projects aimed at enhancing the financial technology landscape in Hong Kong [1][2] Group 1: Data and Payment Infrastructure - HKMA plans to develop a robust and future-oriented infrastructure to support secure, efficient, and scalable data sharing, enhancing cross-border payment connectivity [1] - The initiative aims to create new opportunities for businesses, such as expanding credit channels and promoting trade financing, while providing citizens with personalized financial services and convenient cross-border remittances [1] Group 2: Artificial Intelligence Application - HKMA will introduce a new AI² strategy to promote the comprehensive and responsible application of artificial intelligence in the financial sector [1] - The authority aims to collaborate with the industry to build a shareable and scalable AI infrastructure and specialized financial models, enhancing the accessibility, convenience, and personalization of banking services while maintaining transparency and accountability [1] Group 3: Resilience and Quantum Computing - HKMA will implement measures to strengthen business and technological resilience, including a new certification framework for fintech cybersecurity and a real-time analysis-based early warning system [2] - The authority is preparing the financial sector for post-quantum cryptography (PQC) and will develop quantum-resistant infrastructure to ensure the security of financial services [2] Group 4: Tokenization Promotion - HKMA aims to advance the tokenization ecosystem in Hong Kong by promoting the tokenization of real-world assets, including financial assets [2] - The authority will lead by example, making the issuance of tokenized government bonds a regular practice and exploring the feasibility of tokenizing foreign exchange fund notes and bonds [2] - The settlement of these assets on the blockchain will be facilitated through new digital currencies, including the digital Hong Kong dollar, tokenized deposits, and regulated stablecoins [2]

Core Insights - The total assets of the Exchange Fund reached HKD 42,971 billion as of June 30, 2025, an increase of HKD 1,377 billion from the end of May 2025, with HKD assets rising by HKD 885 billion and foreign currency assets increasing by HKD 492 billion [1] Group 1: Exchange Fund Assets - The increase in HKD assets was primarily due to the month-end balance of Exchange Fund notes and bonds that were subscribed but not settled [1] - The rise in foreign currency assets was mainly attributed to interest income, market value revaluation of investments, and proceeds from the issuance of government green bonds, although this increase was partially offset by the sale of US dollars under the Currency Board system [1] Group 2: Currency Issuance Accounts - As of June 30, 2025, the monetary base was HKD 21,202 billion, a decrease of HKD 47 billion or 0.2% from the end of May 2025, primarily due to the purchase of HKD under the Currency Board system [1] - The decrease in the monetary base was partially offset by an increase in the total amount of liability certificates and the amortization of discounts on issued Exchange Fund notes and bonds [1] Group 3: Supporting Assets - The total amount of supporting assets increased by HKD 86 billion to HKD 23,648 billion, representing a growth of 0.4%, driven by interest income, market value revaluation of investments, and the issuance of liability certificates [1] - The supporting ratio rose from 110.88% at the end of May 2025 to 111.54% at the end of June 2025 [1]