Of the major balance of payments components there was a current account surplus of $76.5 billion, compared to $34.8 billion in the previous quarter. A net outflow of financial non-reserve assets amounting to $49.2 billion was recorded.

Beating the $60.1 billion figure for the same quarter last year, the current account surplus in the third quarter of 2008 was characterised by an increase in visible trade deficit, a rise in invisible trade surplus, an increase in net inflow of external factor income, and a continued net outflow of current transfers.

A net inflow of capital transfers was estimated at $8.1 billion in the third quarter, as compared with a net inflow of $1.8 billion in the second quarter.

An overall net outflow of financial non-reserve assets amounting to $49.2 billion was recorded in the third quarter, as against a $12.2 billion net outflow in the second quarter.

The overall net outflow of financial non-reserve assets in the third quarter was the combined result of a net inflow of direct investment, a net inflow of portfolio investment, a net inflow due to cash settlement of financial derivatives, and a net outflow of other investment.

At the end of September Hong Kong's gross external debt, measuring the total outstanding gross external liabilities other than equity liabilities, amounted to $5.2636 trillion, equivalent to 311% of GDP.

A major proportion of the external debt was due to the banking sector's transactions, accounting for 71.6% of the total.

Compared with end-June, gross external debt fell $52.7 billion. This was mainly attributable to the decreases in direct investment debt liabilities (inter-company lending) and external debt of the other sectors and the Government, which were larger than the increases in external debt of the Monetary Authority and the banking sector.