Hong Kong Monetary Authority doubles alternatives commitments in 2015
Saturday, April 30, 2016
(AVCJ by Tim Burroughs) – The Hong Kong Monetary Authority (HKMA) made new or approved private equity and real estate commitments of $9.7 billion in 2015, double the previous year’s allocation.
The territory's reserves are held in the HK$3.42 trillion ($441 billion) Exchange Fund, which is tasked with affecting the exchange value of the Hong Kong dollar in order to maintain monetary and financial system stability. Investments in illiquid alternatives are made from the long-term growth portfolio (LTGP), which was worth HK$142.1 billion at the end of 2015, up from HK$115.2 billion 12 months earlier.
The private equity share of the portfolio jumped to HK$91.3 billion from HK$80.5 billion, while real estate climbed to HK$50.8 billion from HK$34.7 billion, the HKMA said in its annual report. There was a further HK$122.4 billion in outstanding investment commitments, compared to HK$80.9 billion at the end of 2014.
