People’s Republic of China–Hong Kong Special Administrative Region: Financial Sector Assessment Program-Technical Note-Investment Funds Sector Liquidity Stress Testing

Download or read book People’s Republic of China–Hong Kong Special Administrative Region: Financial Sector Assessment Program-Technical Note-Investment Funds Sector Liquidity Stress Testing written by International Monetary and published by International Monetary Fund. This book was released on 2021-06-15 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Hong Kong Special Administrative Regime (HKSAR) is home to a fast-growing and highly international investment fund industry. The public investment fund industry authorized in HKSAR has grown rapidly from US$628 billion in 2008 to US$1.6 trillion in net asset value (NAV) in 2020. The locally domiciled sector grew from US$121 billion in early 2015 to almost US$155 billion in 2020. Open-end funds authorized for sale in HKSAR are substantially invested in foreign assets and significantly invested in by non-HKSAR residents and are therefore reactive to international liquidity and price conditions. Locally domiciled funds invest their portfolios in both local and overseas assets markets, while they are overwhelmingly funded by HKSAR investors.