No Exchange Fund transfers planned in next 5 years, Hong Kong’s Paul Chan says

South China Morning PostEN 1 min read 100% complete by Lam Ka-singFebruary 28, 2026 at 06:49 AM

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Hong Kong's Financial Secretary Paul Chan stated that no further transfers from the Exchange Fund are planned for the next five years. This announcement follows the recent budget proposal to withdraw HK$150 billion (US$19.2 billion) from the fund over two years, allocating HK$75 billion annually to the Capital Works Reserve Fund. The funds will support infrastructure projects, including the Northern Metropolis. Chan justified the withdrawal, citing the Exchange Fund's record-high investment income of HK$330 billion last year and emphasizing that the transfer would not compromise Hong Kong's financial stability or currency peg. He assured the public that this transfer is not intended to become a regular practice.

Key Entities & Roles

Key Player Opposition Context

Northern Metropolis 50% Capital Works Reserve Fund 60% Hong Kong 80% Exchange Fund ×485% Paul Chan Mo-po ×290%

Keywords

exchange fund 100% paul chan 80% financial stability 70% capital works reserve fund 60% investment income 60% budget announcement 50% hong kong 50% northern metropolis 40% currency peg 40%

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South China Morning Post

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exchange fund paul chan financial stability capital works reserve fund investment income budget announcement hong kong northern metropolis currency peg

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