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HK may set up new investment fund to boost growth

Hong Kong may set up a new investment fund to grow the economy, chief executive-elect, Leung Chun-ying said during a round table discussion with the media on Wednesday.

The city’s de facto central bank, the Hong Kong Monetary Authority already has a fund, which invests the territory’s foreign reserves and is used to back the Hong Kong Dollar. The Exchange Fund, as it is known, had assets of USD341 billion as of 29 February. But Leung is mulling the idea of starting another fund.

"The financial reserves that have built up over the years could be deployed in several ways," Leung said. "What I would like to do is to look at the need and probability in investing in other sectors as well.  Essentially to invest in business initiatives that would not happen by itself in the market."

(Source: CNBC)