The Exchange Fund's assets reached $976.7 billion on October 31, down $3.2 billion on the previous month.

The Monetary Authority said foreign currency assets fell $6.8 billion while HK dollar assets rose $3.6 billion.

The fall in foreign currency assets was mainly due to decreases in repurchase agreements outstanding and securities purchased but settled in the following month which were partly offset by purchase of foreign currencies from HK dollars.

The increase in HK dollar assets was mainly due to an increase in bank borrowings and valuation gains in the market value of Hong Kong equities held by the Exchange Fund.

These increases were partly offset by the sale of HK dollars for foreign currencies and fiscal drawdowns.

Figures in the Currency Board Account show the monetary base at the end of October was $260.3 billion, up $2.4 billion, or 0.9%, on September.

The increase was mainly due to a rise in the Aggregate Balance which was partly offset by a fall in Certificates of Indebtedness.

Backing assets rose by $3 billion, or 1.1%, to $289.5 billion.