June 30 (Reuters) - Assets at the Exchange Fund, which is used to back the Hong Kong dollar, totalled HK$3,020.2 billion ($389.68 billion) at the end of May, the Hong Kong Monetary Authority (HKMA) said on Monday.
The figure was HK$29.8 billion lower than the total at the end of April, with foreign currency assets and Hong Kong dollar assets falling HK$15.3 billion and HK$14.5 billion respectively, the city’s de facto central bank said in a statement.
The HKMA said the decline in foreign currency assets was mainly due to a fall in unsettled purchases of securities, which was partly offset by the purchase of foreign currencies with Hong Kong dollars and valuation gains on foreign currency investments.
The decline in Hong Kong dollar assets was mainly due to fiscal drawdowns and the sale of Hong Kong dollars for foreign currencies. These decreases were partly offset by valuation gains on Hong Kong equities. ($1 = 7.7504 Hong Kong Dollars) (Reporting by Twinnie Siu in HONG KONG; Editing by Gopakumar Warrier)