The assets of Hong Kong's Exchange Fund totaled HK$1.7601 trillion ($225.6 billion) in May, up HK$114.7 billion ($14.7 billion) on April, officials said on Tuesday.

The Exchange Fund, which posted a HK$33.5 billion ($4.29 billion) loss in the first quarter, is getting out of the dilemma with speeding growth rate, with a HK$41.5 billion ($5.32 billion) rise in April and HK$114.7 billion ($14.7 billion) in May.

Foreign currency assets grew by $98.1 billion ($12.57 billion) in May thanks to purchases of foreign currencies with HK dollars and valuation gains on foreign currency investments, the Hong Kong Monetary Authority said.

The Hong Kong dollar assets rose by HK$16.6 billion ($2.13 billion) due to a rise in the balance of the banking system and valuation gains on HK dollar equities.

The monetary base rose 11.5% from a month earlier to hit HK$690.3 billion ($88.47 billion) mainly due to an increase in the aggregate balance.

The backing assets rose 10.7% to HK$733.9 billion ($94.06 billion), while the backing ratio fell from 107.13% in April to 106.32% in May.

The Exchange Fund has been the holder of the backing to the note issue of Hong Kong since its establishment. More resources were put in the fund, which had gradually come to be slightly more actively managed over the past decade or so.

(1$ = HK$7.80272109)