The Exchange Fund's total assets surged $3.9 billion to $1.065 trillion. Both foreign currency assets and Hong Kong dollar assets rose $900 million and $3 billion respectively, the Monetary Authority says.

The increase in foreign currency assets was due mainly to a rise in Certificates of Indebtedness and income from foreign currency assets, which were partly offset by valuation losses on foreign currency investments.

The surge in Hong Kong dollar assets was due mainly to a rise in bank borrowings and valuation gains in the market value of Hong Kong equities held by the Exchange Fund, which were partly offset by fiscal drawdowns.

The Monetary Base stood at $280.7 billion, up $3.1 billion, or 1.1%, from August. The increase was due mainly to a rise in Certificates of Indebtedness.

Backing Assets also rose $2.7 billion, or 0.9%, to $311.9 billion. The increase was attributable mainly to the corresponding increase in Certificates of Indebtedness in the Monetary Base and income from investments, which were partly offset by revaluation losses on investments.