The Exchange Fund's total assets amounted to $1.958 trillion on September 30, up $38.7 billion on August, the Monetary Authority says.

Foreign currency assets rose $33.6 billion and Hong Kong dollar assets grew $5.1 billion.

The rise in foreign currency assets was due mainly to valuation gains on foreign currency investments, purchases of foreign currencies with Hong Kong dollars, and an increase in Certificates of Indebtedness.

The growth in Hong Kong dollar assets was mainly due to valuation gains on Hong Kong equities, increases in bank borrowings, and placements by government/statutory bodies. These increases were partly offset by fiscal drawdowns.

The Currency Board Account shows the Monetary Base in September was $803.6 billion, up $11.5 billion, or 1.45% on August.

The rise in the Monetary Base was due mainly to an inflow of funds into the Hong Kong dollar and an increase in Certificates of Indebtedness.

The Backing Assets rose $12.8 billion, or 1.53%, to $850 billion. It was mainly attributable to the rise in the Monetary Base together with revaluation gains and interest from investments.

Reflecting this, the backing ratio rose from 105.69% in August to 105.77% in September.