The Exchange Fund posted its best annual gain since the Hong Kong Monetary Authority (HKMA) was set up in 1993, as solid stock market returns and rising gold prices boosted the city’s financial war chest used to defend the local currency.

The Exchange Fund’s full-year earnings for 2025 jumped 51 per cent to HK$331 billion (US$42 billion), compared with HK$218.8 billion in 2024, the HKMA said on Wednesday.

The returns surpassed the previous record of HK$264 billion set in 2017.

“Overall, the global financial markets showed strong resilience in 2025,” said Eddie Yue Wai-man, chief executive of the HKMA, at a media briefing. “Major stock markets saw broad-based gains, with many of them setting record highs.”

The price of gold, which rose 64 per cent last year, also benefited the Exchange Fund. The fund has some holdings of the precious metal, but it was not substantial, Yue said.

“Gold is not a liquid asset, so the Exchange Fund does not invest heavily in it. The Exchange Fund maintains a diversified portfolio and does not chase a particular asset,” Yue said.