Core Viewpoint - The Hong Kong Monetary Authority (HKMA) reported a significant increase in the foreign exchange fund's total assets and investment income for the first half of 2025, despite a challenging global investment environment [1][2]. Group 1: Financial Performance - As of June 30, 2025, the total assets of the foreign exchange fund reached HKD 42,971 billion, an increase of HKD 2,161 billion compared to the end of 2024 [1]. - The cumulative surplus of the foreign exchange fund stood at HKD 8,779 billion [1]. - The investment income for the first half of 2025 was HKD 1,944 billion, with bond investment income contributing HKD 753 billion, and stock investment income from Hong Kong and other sources totaling HKD 503 billion [1]. Group 2: Investment Environment - The first half of 2025 was marked by significant volatility in global financial markets due to trade barriers, geopolitical tensions, and the unpredictable stance of the U.S. government on economic policies [2]. - Despite the challenges, there was a recovery in global stock markets as negotiations on tariffs progressed, and the U.S. Federal Reserve maintained its monetary policy targets [2]. - The HKMA emphasized the importance of a cautious and flexible management approach to the foreign exchange fund, focusing on capital preservation and long-term value enhancement [2].