The Hong Kong Monetary Authority on Thursday said the Exchange Fund recorded an investment income of HK$194.4 billion in the first half of the year.

The income is a 76 percent surge compared to the HK$110.1 billion investment income recorded in the same period in 2024.

However, HKMA Chief Executive Eddie Yue warned the investment landscape in the second half of the year remains highly uncertain despite the good returns seen in the first six months.

In a statement, the HKMA announced that the total assets of the fund reached HK$4.29 trillion as of end-June, marking an increase of HK$216.1 billion from the end of 2024, with an accumulated surplus of HK$877.9 billion.

It said the investment income included gains on bonds of HK$75.3 billion – a 30 percent surge year-on-year.

The fund also recorded a HK$22.9 billion gain on Hong Kong equities and HK$27.4 billion on other equities.

Yue said the global financial markets experienced “significant volatility” in the first half of this year, especially following the “aggressive tariff measures” announced by the US government in early April.

But the global stock market rebounded with progress being made in tariff negotiations, leading to positive Exchange Fund returns, he said.

However, Yue warned that the US government’s uncertain economic and trade policies will affect international capital flows and companies’ profits and investment decisions in the second half of the year.

“Any increase in trade frictions or deterioration in geopolitical situations may cause a slowdown in global economic growth, and may also trigger a sharp reversal of market optimism, bringing shocks to the financial markets."