The Exchange Fund in Hong Kong achieved a record return of HK$194 billion (approximately US$24.7 billion) during the first half of 2025, marking a significant increase of 76.6 percent compared to HK$110.1 billion from the same period last year. This impressive growth is attributed to a bull run in the local stock market, which has contributed to the fund's largest six-month gain in over twenty years.

In the second quarter alone, the fund reported returns of HK$115.2 billion, which is more than double the HK$47.8 billion earned during that quarter last year. This follows a positive trend after gaining HK$67.2 billion in the first quarter of 2025, recovering from a loss of HK$20.3 billion in late 2024.

Eddie Yue Wai-man, chief executive of the Hong Kong Monetary Authority (HKMA), noted that global financial markets faced considerable volatility due to rising trade barriers and geopolitical tensions earlier this year. However, as major economies made progress in tariff negotiations, investor confidence improved and global equity markets rebounded, benefiting Hong Kong's stock market as well.

The Exchange Fund was established in 1935 and serves multiple purposes including backing banknote issuance and defending against currency attacks by traders. As of June 30, it stood at HK$4.297 trillion (about US$550 billion), with investments spread across local stocks and international assets such as bonds and real estate projects.

Original article (hkma)

The article provides an update on the performance of Hong Kong's Exchange Fund, offering some valuable insights and information.

Actionable Information: While the article does not explicitly provide a clear set of steps or actions for readers to take, it does highlight the impressive growth and performance of the Exchange Fund, which could potentially influence investor behavior. The mention of the fund's purpose, including backing banknote issuance and defending against currency attacks, might prompt readers to consider the stability and security of their investments.

Educational Depth: It offers a decent level of educational depth by explaining the factors contributing to the fund's growth, such as the bull run in the local stock market and the improvement in investor confidence due to tariff negotiations. This provides context and helps readers understand the broader economic landscape and its impact on Hong Kong's financial markets.

Personal Relevance: The topic of the Exchange Fund's performance is relevant to individuals interested in investing, particularly those with a focus on Hong Kong's financial markets. It could influence their investment strategies and decisions, especially if they are considering local stocks or international assets. For those with a more general interest in economics or finance, it provides an insight into how global events can impact a region's financial health.

Public Service Function: The article does not serve an immediate public service function by providing warnings or emergency contacts. However, it does offer an informative update on the state of Hong Kong's financial markets, which could be of interest to the public, especially in the context of rising trade barriers and geopolitical tensions.

Practicality of Advice: As the article primarily focuses on reporting financial data and market trends, it does not offer specific advice or tips. However, the information provided could be useful for investors or those considering investment strategies, as it highlights the potential for growth and the factors influencing market performance.

Long-Term Impact: The article's focus on the Exchange Fund's performance and the broader economic landscape provides insights that could have long-term implications for investors and the general public. Understanding these trends and factors can help individuals make more informed decisions about their financial future and plan accordingly.

Emotional/Psychological Impact: The article's tone is largely neutral and informative, providing facts and figures without an emotional appeal. While it may not evoke strong emotions, it does offer a sense of stability and potential opportunity, which could be encouraging for investors.

Clickbait/Ad-driven Words: The article does not use sensational or clickbait-style language. It presents the information in a straightforward manner, focusing on the financial data and market trends.

Missed Opportunities: While the article provides a good overview of the Exchange Fund's performance, it could have benefited from including more detailed explanations of the fund's investment strategies or a breakdown of its international asset allocations. This would have given readers a clearer understanding of how the fund operates and how its performance is achieved. Additionally, providing links to trusted sources or resources for further reading could have enhanced the article's educational value.

"This impressive growth is attributed to a bull run in the local stock market..."

The use of the word "impressive" here is a positive spin on the financial gains. It makes the growth seem more significant and desirable, which benefits those who want to highlight the success of the Exchange Fund. This word choice creates a favorable impression and may influence readers' perceptions.

The text primarily conveys a sense of optimism and excitement, with underlying tones of relief and cautiousness. These emotions are expressed through the impressive financial gains achieved by the Exchange Fund, which are described as "record returns" and "the largest six-month gain in over twenty years." The use of words like "impressive," "significant," and "more than double" emphasizes the magnitude of the fund's success, evoking a sense of pride and satisfaction.

The text also mentions a "bull run" in the local stock market, a term often associated with optimism and a positive outlook. This phrase, along with the mention of "investor confidence" and "global equity markets rebounding," creates a narrative of a favorable economic climate, further enhancing the positive emotional tone.

However, the text also acknowledges the challenges faced earlier in the year, with "considerable volatility" and "geopolitical tensions." This creates a sense of relief and cautious optimism, as the fund's performance improved despite these initial difficulties. The mention of "progress in tariff negotiations" and "improved investor confidence" suggests a turning point, adding to the overall positive emotional impact.

These emotions are strategically employed to guide the reader's reaction, creating a narrative of resilience and success. By highlighting the fund's impressive gains and its ability to recover from losses, the text aims to inspire confidence and trust in the Exchange Fund's management and its ability to navigate challenging economic conditions.

The writer employs various persuasive techniques to enhance the emotional impact. One notable strategy is the use of comparative language, such as "more than double" and "largest six-month gain," which exaggerates the magnitude of the fund's success, making it more impressive and memorable. The repetition of positive terms like "record returns" and "impressive growth" also reinforces the emotional message, creating a sense of consistency and emphasis.

Additionally, the text provides a personal touch by quoting Eddie Yue Wai-man, the chief executive of the HKMA, who offers an insightful perspective on the global financial landscape. This personal narrative adds a layer of credibility and human interest, making the information more relatable and engaging.

In summary, the text skillfully utilizes emotional language and persuasive techniques to convey a positive message about the Exchange Fund's performance. By evoking feelings of optimism, relief, and cautiousness, the writer aims to inspire confidence and trust in the fund's management and its ability to navigate economic challenges. These emotional strategies effectively guide the reader's reaction, shaping their perception of the Exchange Fund's achievements and its future prospects.