Table 2 Hong Kong's Balance of Payments Sub-account Components:   Current Account

HK$ million   2003 2004 2004 2004 2004 2004 2005 Standard Components Annual Annual 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr Current Account(1) 128,240 127,401 16,629 7,793 52,258 50,721 33,326       Credit(2) 2,455,828 2,844,171 626,784 687,585 759,586 770,216 697,985       Debit(2) -2,327,588 -2,716,769 -610,155 -679,792 -707,328 -719,495 -664,658                    Goods -44,970 -72,514 -32,814 -29,432 -8,511 -1,757 -19,677          Credit 1,749,089 2,027,031 434,433 497,894 546,732 547,972 479,096          Debit -1,794,059 -2,099,545 -467,247 -527,326 -555,243 -549,729 -498,773                    Services 153,369 185,039 43,215 39,194 48,865 53,765 49,439          Credit 355,175 417,267 95,919 94,736 111,399 115,213 106,746          Debit -201,806 -232,228 -52,704 -55,542 -62,534 -61,448 -57,307       Transportation, credit 107,688 133,730 31,037 32,265 36,003 34,425 34,910       Transportation, debit -52,305 -62,670 -14,119 -15,189 -16,735 -16,627 -15,612       Travel, credit 55,575 70,145 16,546 16,451 17,624 19,524 19,102       Travel, debit -89,133 -103,347 -23,483 -25,650 -28,434 -25,780 -25,567       Insurance services, credit 3,065 3,295 762 846 781 906 818       Insurance services, debit -4,840 -5,471 -1,156 -1,346 -1,332 -1,637 -1,313       Financial services, credit 22,056 25,476 6,656 6,172 6,229 6,419 7,049       Financial services, debit -5,241 -5,879 -1,471 -1,415 -1,423 -1,570 -1,572       Other services, credit 166,792 184,621 40,918 39,002 50,762 53,939 44,867       Other services, debit -50,287 -54,861 -12,475 -11,942 -14,610 -15,834 -13,243                    Factor income 34,142 30,306 9,983 1,570 15,940 2,813 8,045          Credit 347,447 395,283 95,129 94,014 100,355 105,785 110,576          Debit -313,305 -364,977 -85,145 -92,445 -84,415 -102,972 -102,531                       Investment income, credit 346,514 393,414 94,661 93,547 99,888 105,318 110,109                          Direct investment income 195,783 218,228 57,083 50,323 53,934 56,887 54,378             Dividends and distributed branch profits 122,675 134,252 17,817 30,529 42,795 43,111 10,791             Reinvested earnings and                undistributed branch profits 69,616 78,669 38,178 18,608 9,960 11,923 42,756             Income on debt (interest) 3,493 5,307 1,088 1,186 1,179 1,853 831                          Portfolio investment income 105,789 121,981 27,986 30,762 31,999 31,234 34,877             Income on equity 36,524 47,303 9,811 12,491 13,380 11,620 14,275             Income on bonds and notes 64,858 69,655 17,047 17,064 17,286 18,258 19,193             Income on money market instruments 4,407 5,023 1,128 1,207 1,333 1,356 1,410                          Other investment income 44,941 53,205 9,592 12,462 13,955 17,196 20,854                       Investment income, debit -310,835 -362,496 -84,527 -91,825 -83,790 -102,353 -101,899                          Direct investment income -254,594 -295,496 -73,766 -70,371 -66,150 -85,209 -84,994             Dividends and distributed branch profits -124,419 -118,282 -26,475 -34,289 -31,994 -25,525 -23,683             Reinvested earnings and                undistributed branch profits -124,791 -172,282 -46,132 -34,927 -32,829 -58,394 -60,283             Income on debt (interest) -5,385 -4,931 -1,160 -1,155 -1,327 -1,289 -1,028                          Portfolio investment income -28,016 -31,105 -4,165 -13,414 -7,867 -5,658 -3,949             Income on equity -24,704 -28,421 -3,592 -12,851 -7,114 -4,864 -3,143             Income on bonds and notes -3,146 -2,633 -560 -547 -742 -785 -791             Income on money market instruments -165 -52 -14 -17 -11 -10 -15                          Other investment income -28,225 -35,894 -6,596 -8,040 -9,772 -11,486 -12,955                       Compensation of employees, credit 932 1,869 467 467 467 467 466       Compensation of employees, debit -2,470 -2,482 -618 -619 -626 -619 -632                    Current transfers -14,301 -15,429 -3,756 -3,539 -4,035 -4,100 -4,481          Credit 4,117 4,590 1,303 941 1,101 1,246 1,567             General government 0 0 0 0 0 0 0             Other sectors 4,117 4,590 1,303 941 1,101 1,246 1,567          Debit -18,418 -20,019 -5,059 -4,479 -5,136 -5,345 -6,048             General government -1,334 -1,330 -361 -338 -318 -313 -364             Other sectors -17,084 -18,690 -4,698 -4,142 -4,818 -5,032 -5,683

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.