HONG KONG, Sept. 24 (Xinhua) -- Hong Kong's Census and Statistics Department released the preliminary Balance of Payments (BoP) and International Investment Position (IIP) statistics of Hong Kong for the second quarter on Monday.

According to the statistics, Hong Kong recorded a BoP deficit of 7.1 billion HK dollars (0.92 billion U.S. dollars) in the second quarter, which amounts to a ratio of 1.5 percent to GDP, and BoP surplus is 63.8 billion HK dollars, a ratio of 13.2 percent to GDP in the first quarter. Reserve assets correspondingly fell by the same amount.

Meanwhile, the current account recorded a deficit of 9.3 billion HK dollars as a ratio of 2 percent to GDP, as against a surplus of 10.6 billion HK dollars as a ratio of 2.3 percent to GDP in the same quarter of 2011.

The drop in the current account balance was due to an increase in the visible trade deficit, a decrease in the net inflow of primary income and an increase in the net outflow of secondary income, partly offset by an increase in the invisible trade surplus.

As for the capital account, a net outflow of 0.9 billion HK dollars was recorded in the capital account, compared with a net outflow of 0.1 billion HK dollars in the first quarter.

An overall net inflow of financial non-reserve assets amounting to 25.2 billion HK dollars as a ratio of 5.3 percent to GDP was recorded in the second quarter, compared with a net inflow of 78.1 billion HK dollars as a ratio of 16.2 percent to GDP in the first quarter.

This was the combined result of a net inflow of direct investment, a net inflow of portfolio investment and a net inflow due to the cash settlement of financial derivatives, partly offset by a net outflow of other investment. (1 U.S. dollar equals to 7. 75 HK dollar) Enditem

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