Chan Ho-lim: The Hong Kong Exchange Fund does not rule out individual investments in crypto assets, but the relevant proportion is very small

PANews reported on December 11 that according to a Hong Kong government news release, at the Hong Kong Legislative Council meeting today, legislator Wu Jiezhuang asked the Acting Secretary for Financial Services and the Treasury of Hong Kong, Chan Ho-lim, whether the Hong Kong government would consider incorporating digital assets and cryptocurrencies into fiscal reserves, and consider using the foreign exchange fund to continue purchasing and holding them for the long term, whether it would evaluate and study the impact of foreign countries designating Bitcoin as a strategic reserve asset on the financial security of China and Hong Kong (for example, whether it would put pressure on the Hong Kong dollar system and even the economic conditions of Hong Kong in the long run), if so, what are the relevant impacts, and what countermeasures does the government have, including whether it will use Hong Kong's first-mover advantage and unique resource conditions in the field of cryptocurrency to make strategic deployments to contribute to maintaining national financial security?

Chan Ho-lim replied that the Hong Kong Exchange Fund invests in diversified asset classes and markets around the world to diversify risks and enhance long-term returns. Although crypto assets are not the target assets of the Exchange Fund, the HKMA's external investment managers also invest in diversified asset classes and markets around the world. In the investment operations of external investment managers at different times, it is not ruled out that there are individual investments involving crypto assets, but the relevant proportion is very small.

In addition, Chan Ho-lim also revealed that the Hong Kong Securities and Futures Commission announced a number of measures in October this year to promote the development of virtual assets in Hong Kong, including a rapid licensing procedure related to virtual asset trading platforms and the establishment of an advisory group for licensed platforms. The advisory group is expected to be launched early next year.