Chief Executive in Council approves transfer of $150 billion from Exchange Fund to Capital Works Reserve Fund
******************************************************************************************
A Government spokesman said that Section 8 of the EFO sets out the mechanism that empowers the Financial Secretary (FS) to transfer from the Exchange Fund, with the principal condition that the FS is satisfied that such a transfer would not adversely affect the Exchange Fund's main function to maintain the stability of the exchange value of the Hong Kong dollar, as well as the stability and integrity of the local monetary and financial systems.
The Exchange Fund achieved a record‑breaking performance last year, delivering an investment income of $330 billion. As at the end of last year, the total value of assets under the Exchange Fund exceeded $4.1 trillion, which would suffice to maintain monetary and financial stability in Hong Kong. As such, in the 2026-27 Budget, on the premise that the Exchange Fund's function to maintain the stability and integrity of the local monetary and financial systems will not be compromised, the FS proposed transferring $150 billion from the Exchange Fund to the CWRF of the Government over two years in support of the Northern Metropolis and other infrastructure projects.
The Government spokesman emphasised that the transfer is an exceptional arrangement and not a recurring measure, and all funds will be used for infrastructure projects for long-term investment with a view to accelerating and increasing development capacity rather than for the Government's operating expenditure. The Government has consulted the Exchange Fund Advisory Committee earlier on the proposed transfer and secured its support.
Ends/Tuesday, April 14, 2026
Issued at HKT 19:42
Issued at HKT 19:42
NNNN