The loss, its third consecutive quarterly one, compared with investment gains of HK$4.0 billion in the same period a year earlier, and a loss of HK$265.5 billion in the January-September period this year.

HKMA's Chief Executive Eddie Yue said the chances of having a substantial investment loss for the year is still there while investment environment is set to "remains very uncertain and challenging" in 2023.

The HKMA is the key manager of the Exchange Fund, which is under the control of the financial secretary and invests in equities, bonds, foreign exchange and other securities and assets.

"For the exchange fund, we will be defensive," Yue told reporters in a press conference. "We will make sure that even with market volatility, the hit on exchange fund will be capped to as small as possible."

During the third quarter, Hong Kong equities recorded an HK$27.3 billion investment loss as compared to a HK$0.9 billion gain in April-June period and a HK$26.3 billion loss a year ago.

Loss on other equities narrowed to HK$19.2 billion for the third quarter versus a HK$48.6 billion loss from the previous quarter.

Meanwhile, it saw a loss on bonds of HK$22.8 billion for the July-September period comparing with a loss of HK$21.2 billion from the second quarter.