Hong Kong stood as a net creditor, with net external financial assets amounting to $3.09 trillion at the end of 2003, equal to 253% of last year's GDP.

Hong Kong's external financial assets amounted to $9 trillion and liabilities to $6 trillion at the end of last year. 

The ratios of both Hong Kong's external financial assets and liabilities remained substantial at 748% and 495%.

It shows Hong Kong is a highly externally oriented economy with considerable cross-territory investment, and is also a major financial centre in the region with considerable cross-territory fund positions.

The net liability position is the result of direct investment by non-residents in Hong Kong which was greater than that made by Hong Kong residents abroad.

Hong Kong's external financial assets amounted to $9 trillion at the end of 2003. Most of the assets were held by the banks in the form of inter-bank deposits and loans, reflecting the role of Hong Kong as an international banking centre in channelling funds to the rest of the world.

About half of liabilities are direct investments

Hong Kong's external financial liabilities amounted to $6 trillion at the end of 2003 and 48.2% ($2.9 trillion) of this total was in the form of direct investments.

Such a high proportion of direct investment liabilities reflected that Hong Kong had attracted many non-resident enterprises to set up direct investment companies here.