Government says HKD exchange rate remains strong

The exchange rate stood at 7.7501in 4Q12.

The Hong Kong dollar exchange rate strengthened and  stayed close to the strong-side CU of 7.75 during the review period, said the government in the report.

"The strongside CU was triggered intermittently, involving inflows  of HK$90.1 billion," it said.

According to the government, the inflows  partly reflected increased  allocation to Hong Kong dollar  assets by overseas investors and  the proceeds from issuance of  foreign currency bonds by Hong  Kong firms in exchange for Hong Kong dollars.

The stronger  equity initial public offerings  (IPO) activities also to some  extent supported the inflows  towards late November, it added.