Traditional Chinese Simplified Chinese Email this article news.gov.hk
Hong Kong's Balance of Payments and International Investment Position statistics for the third quarter of 2013
************************************************************

     The Census and Statistics Department (C&SD) released today (December 20) the preliminary Balance of Payments (BoP) and International Investment Position (IIP) statistics of Hong Kong for the third quarter of 2013. The preliminary External Debt (ED) statistics of Hong Kong for the same period were also included in this release.

I. Balance of Payments

     Hong Kong recorded a BoP deficit of $28.7 billion (as a ratio of 5.2% to GDP) in the third quarter of 2013, as against a BoP surplus of $25.4 billion (as a ratio of 5.2% to GDP) in the second quarter of 2013. Reserve assets correspondingly decreased by the same amount in the third quarter of 2013.

Current account

     The current account recorded a surplus of $33.5 billion (as a ratio of 6.1% to GDP) in the third quarter of 2013, compared with a surplus of $25.0 billion (as a ratio of 4.8% to GDP) in the same quarter of 2012. On a year-on-year comparison, the increase in the current account surplus was due to an increase in the invisible trade surplus and a slight decrease in the net outflow of secondary income, partly offset by an increase in the visible trade deficit and a decrease in the net inflow of primary income.

     With imports of goods increasing faster than exports of goods, the visible trade deficit increased from $18.6 billion in the third quarter of 2012 to $23.0 billion in the same quarter of 2013. On the other hand, the invisible trade surplus increased from $48.1 billion in the third quarter of 2012 to $61.5 billion in the same quarter of 2013, as exports of services increased faster than imports of services. Overall, a combined visible and invisible trade surplus of $38.5 billion was recorded in the third quarter of 2013, greater than that of $29.5 billion in the same quarter of 2012.

     The primary income inflow and outflow amounted to $285.3 billion and $284.9 billion respectively, thus yielding a net inflow of $0.4 billion in the third quarter of 2013, compared with a net inflow of $0.9 billion in the same quarter of 2012.

     The secondary income inflow and outflow amounted to $2.2 billion and $7.6 billion respectively, resulting in a net outflow of $5.3 billion in the third quarter of 2013, compared with a net outflow of $5.4 billion in the same quarter of 2012.

Capital and financial account

     In the third quarter of 2013, a net outflow of $1.3 billion was recorded in the capital account, compared with a net outflow of $0.1 billion in the second quarter of 2013.

     An overall net outflow of financial non-reserve assets amounting to $36.0 billion (as a ratio of 6.6% to GDP) was recorded in the third quarter of 2013, as against a net inflow of $51.5 billion (as a ratio of 10.4% to GDP) in the second quarter of 2013. This was the result of a net outflow of portfolio investment, partly offset by a net inflow of direct investment, a net inflow due to the cash settlement of financial derivatives, and a net inflow of other investment.

     Direct investment recorded a net inflow of $11.6 billion in the third quarter of 2013, as against a net outflow of $81.1 billion in the second quarter of 2013. Portfolio investment recorded a net outflow of $123.3 billion in the third quarter of 2013, compared with a net outflow of $31.7 billion in the second quarter of 2013. Financial derivatives recorded a net inflow of $10.6 billion in the third quarter of 2013, as against a net outflow of $7.5 billion in the second quarter of 2013. Other investment recorded a net inflow of $65.1 billion in the third quarter of 2013, compared with a net inflow of $171.7 billion in the second quarter of 2013.

     In the third quarter of 2013, reserve assets decreased by $28.7 billion, as against an increase of $25.4 billion in the second quarter of 2013.

II. International Investment Position

     At the end of the third quarter of 2013, Hong Kong's external financial assets and liabilities amounted to $28,240.4 billion and $22,615.4 billion respectively. After netting out the external financial liabilities from the external financial assets, Hong Kong was a net creditor. Hong Kong's net external financial assets amounted to $5,624.9 billion (as a ratio of 267% to GDP) at the end of the third quarter of 2013, compared with $5,437.0 billion (as a ratio of 261% to GDP) at the end of the second quarter of 2013.

     The ratios of both Hong Kong's external financial assets and liabilities to GDP at the end of the third quarter of 2013 remained at very high level, at 13.4 times and 10.7 times respectively, reflecting that Hong Kong is a highly externally oriented economy and also a major financial centre in the region with considerable cross-territory investment.

External financial assets

     Within the total value of external financial assets at the end of the third quarter of 2013, direct investment was the largest component, accounting for 37.5% ($10,589.5 billion) of the total value. Portfolio investment ($8,138.1 billion) and other investment ($6,589.8 billion) contributed 28.8% and 23.3% respectively.

External financial liabilities

     Within the total value of external financial liabilities at the end of the third quarter of 2013, 49.7% ($11,237.2 billion) was in the form of direct investment. Other investment ($6,901.0 billion) and portfolio investment ($3,950.6 billion) contributed 30.5% and 17.5% respectively.

III. External Debt

     At the end of the third quarter of 2013, Hong Kong's gross ED (measuring total outstanding gross external liabilities other than equity liabilities) amounted to $8,603.1 billion (as a ratio of 408% to GDP). Compared with $8,277.7 billion (as a ratio of 398% to GDP) at the end of the second quarter of 2013, gross ED increased by $325.4 billion. This was mainly attributable to the increase in ED of the banking sector.

Sectoral analysis

     At the end of the third quarter of 2013, a major proportion of Hong Kong's ED was attributable to the banking sector, accounting for 68.2% of the total. Other ED mainly consisted of debt liabilities in direct investment (intercompany lending) (with a share of 16.9%) and ED of other sectors (14.8%).

     ED of the banking sector increased from $5,541.9 billion at the end of the second quarter of 2013 (as a ratio of 266% to GDP) to $5,863.6 billion at the end of the third quarter of 2013 (as a ratio of 278% to GDP). ED attributable to debt liabilities in direct investment (intercompany lending), other sectors, the Government and the Hong Kong Monetary Authority amounted to $1,451.1 billion, $1,275.8 billion, $10.5 billion and $2.1 billion respectively at the end of the third quarter of 2013.

Further information

     BoP is a statistical statement that systematically summarises, for a specific time period (typically a year or a quarter), the economic transactions of an economy with the rest of the world (i.e. between residents and non-residents).

     IIP is a balance sheet showing the stock of external financial assets and liabilities of an economy at a particular time point. The difference between the external financial assets and liabilities is the net IIP of the economy, which represents either its net claim on or net liability to the rest of the world.

     Gross ED, at a particular time point, is the outstanding amount of those actual current, and not contingent, liabilities that are owed to non-residents by residents of an economy, and require payment of principals and/or interests by the debtors at some time points in the future.

     BoP and IIP statistics of Hong Kong are compiled in accordance with international standards as stipulated in the Sixth Edition of the Balance of Payments and International Investment Position Manual (BPM6) released by the International Monetary Fund (IMF) in 2009. ED statistics of Hong Kong are compiled according to the External Debt Statistics: Guide for Compilers and Users published by the Inter-agency Task Force on Finance Statistics chaired by the IMF. Concepts inherent in these two international guidelines are harmonised with each other.

     In end-2013, a review on the classification of some data items under other investment assets and liabilities in the BoP and IIP compilation frameworks was conducted for alignment with the recommendations of the BPM6. As a result of the review, the entire series of some components under other investment assets and liabilities have been revised. Since this review involved only reclassification of data items within other investment, the data series at the broader level of other investment assets and liabilities have not been affected.

     Table 1 presents Hong Kong's BoP by standard component. Table 2 presents the detailed current account analysed by sub-account component, while Table 3 presents the detailed capital and financial account analysed by sub-account component. Table 4 shows Hong Kong's IIP by broad component, and Table 5 shows Hong Kong's ED by standard component.

     With the incorporation of the latest data from surveys and other sources, the BoP, IIP and ED statistics for 2012 have been revised. As regards the BoP, IIP and ED statistics for the third quarter of 2013, they are only preliminary figures, and are subject to revision upon the availability of more data.

     More details of the statistics of BoP, IIP and ED, together with the conceptual and methodological details, are presented in the publication Balance of Payments, International Investment Position and External Debt Statistics of Hong Kong, Third Quarter 2013 published by the C&SD. Users can download this publication free of charge at the website of the C&SD (www.censtatd.gov.hk/hkstat/sub/sp260.jsp?productCode=B1040001).

     For enquiries about the BoP, IIP and ED statistics, please contact the Balance of Payments Section of the C&SD (Tel: 2116 8660; fax: 2116 0278; email: [email protected]).

Ends/Friday, December 20, 2013
Issued at HKT 16:30

NNNN

Print this page