Table 1 Hong Kong's Balance of Payments Account

HK$ million   2001 2002 2002 2002 2002 2002 2003 2003 Standard Components Annual Annual 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr Current Account(1) 95,763 137,277 30,034 19,943 41,993 45,306 36,494 19,730                            Goods -64,970 -39,406 -12,444 -16,381 -4,979 -5,603 -15,985 -9,811                            Services 133,436 163,735 31,160 37,805 42,695 52,075 40,660 31,470                            Factor income 41,174 27,423 14,779 2,137 8,099 2,408 15,950 1,539                            Current transfers -13,878 -14,475 -3,461 -3,618 -3,822 -3,573 -4,131 -3,469                   Capital and Financial Account(1) -97,359 -191,417 -46,809 -30,363 -57,056 -57,189 -38,356 -6,276                            Capital transfers -9,155 -15,725 -2,998 -7,586 -1,912 -3,229 -1,948 -2,825                            Financial non-reserve assets (net change) -51,674 -194,233 -39,950 -25,897 -62,844 -65,542 -26,017 -25,186                                     Direct investment 96,948 -31,007 -10,139 15,254 -32,735 -3,387 3,016 34,843                                     Portfolio investment -322,045 -290,749 7,056 -117,765 -82,478 -97,561 -54,803 -25,874                                     Financial derivatives 39,640 10,616 12,316 6,054 -5,706 -2,048 12,122 22,044                                     Other investment 133,783 116,906 -49,183 70,560 58,075 37,454 13,649 -56,198                            Reserve assets (net change)(2) -36,530 18,541 -3,861 3,120 7,700 11,582 -10,392 21,735                   Net errors and omissions(3) 1,597 54,140 16,775 10,420 15,063 11,883 1,862 -13,454 Overall Balance of Payments 36,530 -18,541 3,861 -3,120 -7,700 -11,582 10,392 -21,735   (in surplus) (in deficit) (in surplus) (in deficit) (in deficit) (in deficit) (in surplus) (in deficit)

Notes : (1) In accordance with the Balance of Payments accounting rules, a positive value for the balance figure in the current account represents a surplus whereas a negative value represents a deficit. For the capital and financial account, a positive value indicates a net capital and financial inflow and a negative value indicates a net outflow. As increases in external assets are debit entries and decreases are credit entries, a negative value for net change in reserve assets represents a net increase and a positive value represents a net decrease.         (2) The estimates on net change in reserve assets under the Balance of Payments framework are transaction figures. Effects from valuation changes (including price changes and exchange rate changes) and reclassifications are excluded.         (3) In principle, the net sum of credit entries and debit entries is zero. In practice, discrepancies between the credit and debit entries may occur for various reasons, as the data are collected from many sources. Equality between the sums of credit entries and debit entries is brought about by the inclusion of a balancing item which reflects net errors and omissions.