Table 2 Hong Kong's Balance of Payments Sub-account Components:   Current 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       Credit(2) 2,204,185 2,248,723 487,815 537,317 621,174 602,416 553,272 564,896       Debit(2) -2,108,422 -2,111,446 -457,782 -517,375 -579,181 -557,110 -516,778 -545,166                      Goods -64,970 -39,406 -12,444 -16,381 -4,979 -5,603 -15,985 -9,811          Credit 1,488,982 1,562,121 326,087 373,691 435,519 426,824 383,436 419,318          Debit -1,553,952 -1,601,527 -338,531 -390,072 -440,498 -432,427 -399,421 -429,129                      Services 133,436 163,735 31,160 37,805 42,695 52,075 40,660 31,470          Credit 325,889 357,147 78,241 83,343 94,798 100,765 87,441 68,669          Debit -192,453 -193,412 -47,081 -45,538 -52,103 -48,690 -46,781 -37,199       Transportation, credit 93,675 103,003 23,374 25,275 28,065 26,289 25,876 21,622       Transportation, debit -50,916 -51,670 -11,558 -12,675 -14,292 -13,145 -12,284 -10,584       Travel, credit 64,594 78,046 15,811 20,033 18,020 24,182 18,945 7,128       Travel, debit -96,057 -96,846 -25,315 -22,656 -25,938 -22,937 -23,604 -16,309       Insurance services, credit 3,556 3,739 818 949 907 1,065 910 1,010       Insurance services, debit -4,028 -4,024 -851 -977 -1,038 -1,158 -969 -1,082       Financial services, credit 21,823 20,906 5,488 5,283 5,140 4,995 5,386 5,127       Financial services, debit -5,242 -5,348 -1,303 -1,338 -1,320 -1,387 -1,367 -1,358       Other services, credit 142,241 151,453 32,750 31,803 42,666 44,234 36,324 33,782       Other services, debit -36,210 -35,524 -8,054 -7,892 -9,515 -10,063 -8,557 -7,866                      Factor income 41,174 27,423 14,779 2,137 8,099 2,408 15,950 1,539          Credit 384,595 324,099 82,412 78,110 89,826 73,751 81,196 75,731          Debit -343,420 -296,676 -67,633 -75,973 -81,726 -71,344 -65,246 -74,191                         Investment income, credit 384,565 324,084 82,406 78,106 89,823 73,749 81,194 75,729                            Direct investment income 168,497 165,164 39,744 38,871 49,463 37,086 42,497 38,607             Dividends and distributed branch profits 61,566 116,430 10,996 10,934 50,896 43,604 17,079 34,137             Reinvested earnings and                undistributed branch profits 103,179 46,651 28,193 27,474 -1,899 -7,117 23,779 3,916             Income on debt (interest) 3,751 2,083 554 463 467 600 1,639 554                            Portfolio investment income 96,338 93,499 25,160 22,622 24,723 20,995 25,673 24,977             Income on equity 19,631 22,151 7,569 4,382 7,084 3,115 8,164 7,422             Income on bonds and notes 70,682 66,710 16,449 17,104 16,496 16,660 16,302 16,444             Income on money market instruments 6,025 4,638 1,141 1,136 1,142 1,219 1,207 1,111                            Other investment income 119,730 65,421 17,502 16,613 15,638 15,669 13,025 12,145                         Investment income, debit -343,391 -296,661 -67,627 -75,969 -81,724 -71,341 -65,244 -74,189                            Direct investment income -244,838 -230,854 -52,818 -55,775 -66,561 -55,699 -53,510 -54,185             Dividends and distributed branch profits -141,787 -80,485 -15,028 -23,424 -17,829 -24,204 -20,203 -27,503             Reinvested earnings and                undistributed branch profits -96,349 -145,740 -36,674 -31,156 -47,505 -30,405 -32,442 -24,628             Income on debt (interest) -6,702 -4,629 -1,116 -1,195 -1,227 -1,091 -865 -2,054                            Portfolio investment income -26,835 -27,014 -4,838 -10,215 -5,563 -6,398 -3,652 -13,046             Income on equity -20,641 -22,412 -3,633 -9,077 -4,345 -5,358 -2,671 -12,103             Income on bonds and notes -5,002 -3,968 -1,035 -931 -1,064 -938 -928 -900             Income on money market instruments -1,192 -635 -170 -208 -154 -102 -52 -44                            Other investment income -71,718 -38,793 -9,971 -9,978 -9,600 -9,244 -8,083 -6,958                         Compensation of employees, credit 30 15 6 4 3 2 2 2       Compensation of employees, debit -30 -15 -6 -4 -3 -2 -2 -2                      Current transfers -13,878 -14,475 -3,461 -3,618 -3,822 -3,573 -4,131 -3,469          Credit 4,719 5,357 1,076 2,174 1,031 1,076 1,199 1,178             General government 0 0 0 0 0 0 0 0             Other sectors 4,719 5,357 1,076 2,174 1,031 1,076 1,199 1,178          Debit -18,597 -19,831 -4,537 -5,792 -4,853 -4,649 -5,330 -4,647             General government -1,299 -1,342 -353 -331 -329 -328 -355 -309             Other sectors -17,298 -18,489 -4,184 -5,460 -4,524 -4,321 -4,975 -4,338

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.         (2) In a Balance of Payments account, every external transaction is presented by two entries, a credit and a debit. In the current account, exports of goods and services, factor income inflows and transfers from abroad are credit entries, while imports of goods and services, factor income outflows and transfers to abroad are debit entries.