This investment income includes a 15.1 billion HK dollars gain on Hong Kong equities, a 12.1 billion HK dollars rise on other equities, a 7.5 billion HK dollars exchange gain from the appreciation of other currencies against the US dollar, and a 12.3 billion HK dollars boost from bonds and other investments, according to Hong Kong Monetary Authority

Interest and other costs of 5.1 billion HK dollars were incurred during the period while payment to fiscal reserves amounted to 13.3 billion HK dollars. After deducting these two items the net investment income was 28.6 billion HK dollars, which was added to the Exchange Fund’s accumulated surplus.

At the end of June the accumulated surplus stood at 536.3 billion HK dollars, said the authority.

Total assets of the fund stood at about 1.257 trillion HK dollars at the end of June, up 80.5 billion HK dollars on the end of 2006.

The authority’s Chief Executive Joseph Yam was quoted as saying that despite continued global economic growth so far this year, financial markets experienced sharp volatility.

“It is nevertheless encouraging that, notwithstanding these sharp and unexpected market movements, the Exchange Fund has been able to earn an investment income of 47 billion HK dollars in the first half of the year,” he said.