Hong Kong Monetary Authority: The bad debt ratio for the "100% Guaranteed Special Loans" in Q4 2025 is 18.67%
The Vice President of the Hong Kong Monetary Authority, Li Dazhi, stated that the bad debt ratio of Hong Kong's "100% Guaranteed Special Loans" will rise to 18.67% in the fourth quarter of 2025, an increase of 0.5-0.6 percentage points from the third quarter, with the growth rate slowing down from an earlier increase of over 3 percentage points. Li pointed out that the foreign exchange fund holds a small amount of physical gold, and some of its commodity investment portfolio is related to gold, but the quantity is not large. Although gold prices have risen strongly over the past two years, there was a decline over the past weekend, particularly with a remarkable drop in silver prices. He indicated that there are many uncertainties in the market going forward, including geopolitical factors and the direction of U.S. interest rates, so the scale of the foreign exchange fund needs to diversify risks. He mentioned that precious metals also have investment value, but their price changes differ from those of bonds. The President of the Hong Kong Monetary Authority, Richard Yu, stated that the division of accounts between the foreign exchange fund and the government is effective, using the 6-year rolling investment return rate of the foreign exchange fund portfolio as a benchmark, or the yield of 3-year foreign exchange fund notes, whichever is higher, can make the government's investment returns more predictable and stable
