The Exchange Fund amounted to $979.9 billion at the end of September. This was $16.9 billion higher than the previous month.

Foreign currency assets and Hong Kong dollar assets increased $10.5 billion and $6.4 billion respectively. The increase of the former was mainly due to valuation gains of foreign currency investments and a rise in securities purchased.

These increases were partly offset by the sale of foreign currencies for Hong Kong dollars and a decrease in repurchase agreements outstanding.

The increase in Hong Kong dollar assets was mainly due to the purchase of Hong Kong dollars from foreign currencies, an increase in bank borrowings and valuation gains in the market value of Hong Kong equities held by the Exchange Fund.

The monetary base at the end of September was $257.9 billion, an increase of $2.9 billion, or 1.1%, over the previous month.

Backing assets increased 0.4% to $286.5 billion, the backing ratio fell from 111.91% at the end of August to 111.08% at the end of September.