Eddie Yue Expects Continued Market Volatility This Quarter as Exchange Fund Faces Tougher Performance

Hong Kong Monetary Authority Chief Executive Eddie Yue expects the market to be full of uncertainty this quarter, with the Exchange Fund's performance remaining more difficult this quarter, requiring good regional and currency diversification from a long-term return perspective. He said the Exchange Fund's US dollar asset allocation has been gradually reduced since the end of last year, with the duration of bond holdings further shortened to enhance defensiveness. He is also watching the impact of the US midterm elections on energy prices, inflation and interest rate trends, as well as whether corporate revenue can support massive AI spending.