Chan Ho-lim: The Hong Kong Exchange Fund invests in diversified asset classes and markets around the world, and does not rule out the possibility that individual external investment managers may be involved in crypto asset investments

Hong Kong Legislative Council member Wu Jiezhuang asked the Secretary for Financial Services and the Treasury of the Hong Kong Department, Chan Ho-lim, at the Legislative Council whether the Hong Kong government would consider including digital assets and cryptocurrencies in its fiscal reserves and consider using the Exchange Fund to continue to purchase and hold them for a long time. 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, if so, what is the impact, and what countermeasures the government has, including whether it will use Hong Kong's first-mover advantage and unique resource conditions in the field of cryptocurrencies 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 external investment managers of the HKMA also invest in diversified asset classes and markets around the world. In the investment operations of the 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 is promoting the rapid licensing procedures related to virtual asset trading platforms and establishing an advisory group for licensed platforms. It is expected that the relevant advisory group will be launched early next year. (Hong Kong Government Press Release)