Aggregate Balance holds at HK$54 billion amid stable HKD

Between 23 April and 22 June 2026, the Hong Kong dollar traded between 7.8289 and 7.8397 per US dollar.

Exchange rate stability was sustained by Southbound Stock Connect flows and capital market activity.

Local interbank rates largely tracked US dollar counterparts, with overnight rates seeing brief month-end upticks.

Convertibility Undertakings were not triggered, keeping the Aggregate Balance stable at around HK$54 billion.

The Monetary Base rose to HK$2,072.94 billion, fully backed by foreign exchange reserves under Currency Board principles.

Additionally, the Fast Interface for New Issuance framework helped reduce IPO-related interbank transfers and smoothed short-term HIBOR volatility.

Global energy shocks stemming from Middle East conflicts boosted inflation across Asia and reignited expectations of potential Federal Reserve rate hikes.

Strong artificial intelligence exports supported regional growth, but several Asian central banks raised interest rates sharply to protect domestic currencies.

In the Chinese Mainland, April and May activity missed forecasts despite solid external trade.

Hong Kong's economic expansion accelerated in the first quarter, though commercial real estate remained under pressure despite mild gains in prime office space.