Paul Chan: Hong Kong has no plans to withdraw funds from the Exchange Fund again within the next five years.

According to a report by the South China Morning Post, Hong Kong Financial Secretary Paul Chan Mo-po disclosed that Hong Kong has no plans to withdraw funds from the Exchange Fund again in the next five years. He previously announced that Hong Kong would transfer HK$150 billion (US$19 billion) from the Exchange Fund, which is used to maintain the Hong Kong dollar's exchange rate peg to the US dollar. This proposed withdrawal would be the first since 1984. Chan stated that there would be no such measure in the medium-term forecast, and he did not intend to make the withdrawal "a routine practice." It is understood 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 a trading range of 7.75 to 7.85, thereby maintaining financial stability and investor confidence.