Hong Kong records 51 bln HKD balance of payment surplus

HONG KONG, Dec. 23 (Chinese media) -- Hong Kong recorded a 51.3 billion HK dollars surplus in its balance of payment account, at 11.9 percent of GDP, in the third quarter, announced the Census and Statistics Department of Hong Kong SAR on Tuesday.

According to the Census and Statistics Department, of the major balance of payments components there was a current account surplus of 76.5 billion HK dollars, compared with 34.8 billion HK dollars in the previous quarter. A net outflow of financial non-reserve assets amounting to 49.2 billion HK dollars was recorded.

Beating the 60.1 billion HK dollars for the same quarter last year, the current account surplus in the third quarter of 2008 was characterized by an increase in visible trade deficit, a rise in invisible trade surplus, an increase in net inflow of external factor income, and a continued net outflow of current transfers.

Meanwhile, a net inflow of capital transfers was estimated at 8.1 billion HK dollars in the third quarter, as compared with a net inflow of 1.8 billion HK dollars in the second quarter.

An overall net outflow of financial non-reserve assets amounting to 49.2 billion HK dollars was recorded in the third quarter, as against a net outflow of 12.2 billion HK dollars in the second quarter.

The overall net outflow of financial non-reserve assets in the third quarter was the combined result of a net inflow of direct investment, a net inflow of portfolio investment, a net inflow due to cash settlement of financial derivatives, and a net outflow of other investment.

At the end of September Hong Kong's gross external debt, measuring the total outstanding gross external liabilities other than equity liabilities, amounted to 5.2636 trillion HK dollars, equivalent to 311 percent of GDP.

A major proportion of the external debt was due to the banking sector's transactions, accounting for 71.6 percent of the total.

Compared with end-June, gross external debt fell 52.7 billion HK dollars. Mainly attributable to the decreases in direct investment debt liabilities (inter-company lending) and external debt of the other sectors and the Government, which were larger than the increases in external debt of the Monetary Authority and the banking sector.