The Exchange Fund's total assets amounted to $1.3191 trillion on September 30, up $34.1 billion on August, the Monetary Authority says.

Foreign currency assets rose $15.3 billion and Hong Kong dollar assets rose $18.8 billion.

The rise in foreign currency assets was mainly due to investments, interest and dividend income from foreign currency assets and an increase in Certificates of Indebtedness. 

The rise in Hong Kong dollar assets was mainly due to valuation gains in Hong Kong equities, which were partly offset by fiscal drawdowns.

The Currency Board Account shows that the Monetary Base in September was $304 billion, up $5.9 billion, or 2% in August. The rise was mainly due to increases in Certificates of Indebtedness and market value of Exchange Fund Bills and Notes outstanding.

Backing Assets grew by $5.3 billion, or 1.6%, to $334.2 billion. The increase was mainly attributable to the issuance of Certificates of Indebtedness in the Monetary Base and interest from investments, which were partly offset by exchange losses triggered by a stronger Hong Kong dollar.

Reflecting this the backing ratio fell to 109.94% in September from 110.32% in August.