Chen Maobo: Hong Kong has no plans to withdraw from the Exchange Fund again in the next five years

According to the South China Morning Post, Hong Kong's Financial Secretary Paul Chan has revealed that there are no plans to withdraw funds from the Exchange Fund again in the next five years. He previously disclosed that Hong Kong would transfer HK$150 billion (US$19 billion) from the Exchange Fund, which is used to maintain the peg of the Hong Kong dollar to the US dollar. This proposed withdrawal would be the first since 1984.

Paul Chan stated that there will be no such measures in the medium-term forecast and that he does not intend for withdrawals to become "a regular practice." It is reported that the main role of the Hong Kong Exchange Fund is to support the Hong Kong dollar's exchange rate against the US dollar within the trading range of 7.75 to 7.85, thereby maintaining financial stability and investor confidence.