Table 3 Hong Kong's Balance of Payments Sub-account Components:   Capital and Financial Account

HK$ million   1998 1999 1999 1999 1999 1999 Standard Components     1st Qtr 2nd Qtr 3rd Qtr 4th Qtr               Capital and Financial Account(1) -30,347 -76,215 -14,263 -14,001 -33,980 -13,973    Capital Account -18,452 -13,765 -3,089 -3,049 -3,123 -4,505       Capital transfers -18,452 -13,765 -3,089 -3,049 -3,123 -4,505          General government 0 0 0 0 0 0          Other sectors -18,452 -13,765 -3,089 -3,049 -3,123 -4,505       Non-produced and non-financial assets ... ... ... ... ... ...    Financial Account -11,895 -62,450 -11,174 -10,952 -30,857 -9,468       Direct investment -17,016 24,615 2,625 -13,983 -9,323 45,296          Direct investment abroad -131,462 -154,336 -35,585 -58,631 -71,356 11,236             Equity capital -24,072 14,835 -10,956 439 -13,926 39,278                Claims on affiliated enterprises -24,072 14,695 -11,182 525 -13,926 39,278                Liabilities to affiliated enterprises ... 140 226 -86 ... ...             Reinvested earnings -51,919 -62,774 -16,931 -17,447 -22,131 -6,265             Other capital -55,472 -106,397 -7,698 -41,623 -35,299 -21,777                Claims on affiliated enterprises -52,408 -104,202 -10,845 -44,555 -32,622 -16,180                Liabilities to affiliated enterprises -3,064 -2,194 3,147 2,933 -2,677 -5,597          Direct investment in HK 114,446 178,951 38,210 44,648 62,033 34,060             Equity capital 10,244 23,322 528 2,020 14,159 6,615                Claims on direct investors ... ... ... ... ... ...                Liabilities to direct investors 10,244 23,322 528 2,020 14,159 6,615             Reinvested earnings 44,702 100,167 21,492 21,910 37,824 18,941             Other capital 59,500 55,463 16,190 20,718 10,051 8,504                Claims on direct investors 3,533 -19,730 -4,065 -12,446 781 -4,000                Liabilities to direct investors 55,967 75,193 20,255 33,164 9,270 12,504       Portfolio investment 171,052 250,472 33,051 5,222 115,213 96,986          Assets 197,444 -197,586 -46,199 -71,412 13,322 -93,297             Equity securities 65,888 -226,156 -12,663 -140,931 -27,551 -45,011                Banks 398 -315 -199 -52 -18 -46                Other sectors 65,490 -225,841 -12,464 -140,879 -27,533 -44,965             Debt securities 131,556 28,570 -33,536 69,519 40,873 -48,286                Bonds and notes 123,207 32,793 -31,928 68,494 52,309 -56,082                   Banks 62,203 -37,273 -9,167 -6,364 -774 -20,968                   Other sectors 61,004 70,065 -22,761 74,858 53,083 -35,115                Money market instruments 8,349 -4,222 -1,608 1,025 -11,436 7,796                   Banks 6,212 7,283 -1,460 1,025 -5,893 13,611                   Other sectors 2,137 -11,505 -148 ... -5,542 -5,815          Liabilities -26,392 448,058 79,250 76,634 101,891 190,283             Equity securities -16,314 456,600 67,461 88,210 78,959 221,970                Banks -2,017 16,575 3,303 5,116 3,211 4,945                Other sectors -14,297 440,025 64,158 83,094 75,748 217,025             Debt securities -10,078 -8,542 11,789 -11,576 22,932 -31,687                Bonds and notes -7,938 -25,840 6,057 -11,208 14,051 -34,740                   Banks -5,167 -5,173 172 -1,664 -2,803 -878                   Other sectors -2,771 -20,666 5,885 -9,544 16,854 -33,861                Money market instruments -2,140 17,298 5,732 -368 8,881 3,053                   Banks -1,448 5,859 1,102 4,464 -405 698                   Other sectors -692 11,438 4,630 -4,832 9,286 2,354       Financial derivatives 25,374 95,475 -14,710 92,328 -25,998 43,855          Assets 83,644 186,457 18,123 95,030 22,430 50,874             Banks 77,477 160,305 13,394 93,696 2,734 50,481             Other sectors 6,167 26,152 4,729 1,334 19,696 393          Liabilities -58,270 -90,982 -32,833 -2,702 -48,428 -7,019             Banks -48,790 -79,204 -28,366 -2,228 -47,556 -1,054             Other sectors -9,480 -11,778 -4,467 -474 -872 -5,965       Other investment -245,059 -358,872 -24,794 -92,570 -98,024 -143,484          Assets 928,125 327,012 359,718 80,066 -54,401 -58,371             Trade credits -6,270 -24,561 -2,800 -7,073 -10,360 -4,328             Loans 832,466 330,462 197,446 89,293 30,679 13,044                Banks 827,987 299,944 201,311 56,177 25,432 17,024                Other sectors 4,480 30,517 -3,866 33,116 5,247 -3,980             Currency and deposits 105,747 29,465 166,649 2,542 -78,052 -61,674                Banks -42,251 -41,996 107,875 -1,896 -79,079 -68,896                Other sectors 147,997 71,461 58,774 4,438 1,027 7,222             Other assets -3,818 -8,354 -1,577 -4,696 3,332 -5,413                Banks 2,534 139 -1,076 -2,548 1,994 1,769                Other sectors -6,351 -8,493 -501 -2,148 1,338 -7,182          Liabilities -1,173,184 -685,884 -384,512 -172,636 -43,623 -85,113             Trade credits -958 3,032 -1,101 1,888 3,968 -1,723             Loans -27,134 -51,310 -5,119 -37,860 -4,682 -3,649                Banks -2,232 -13,392 -7,079 -19,534 12,198 1,023                Other sectors -24,902 -37,918 1,960 -18,326 -16,880 -4,672             Currency and deposits -1,155,274 -639,986 -381,423 -138,049 -41,923 -78,591                Banks -1,149,402 -638,569 -381,135 -138,049 -42,121 -77,264                Other sectors -5,872 -1,418 -289 ... 198 -1,327             Other liabilities 10,182 2,380 3,131 1,385 -986 -1,150                Banks 554 970 335 1,240 589 -1,194                Other sectors 9,628 1,408 2,795 145 -1,576 44       Reserve assets (net change)(2) 53,754 -74,140 -7,346 -1,949 -12,725 -52,121 Net errors and omissions 7,873 4,189 4,356 4,365 6,653 -11,184 Overall Balance of Payments -53,754 74,140 7,346 1,949 12,725 52,121   (in deficit) (in surplus) (in surplus) (in surplus) (in surplus) (in surplus)

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.         ... Transaction value is insignificant (too small or close to zero).