Census and Statistics Department of the Hong Kong Government: Hong Kong's balance of payments recorded a surplus of HK$54.6 billion in the second quarter of 2026.

On September 21, the Census and Statistics Department of the Hong Kong Government released the preliminary statistics on Hong Kong's balance of payments, international investment position, and external debt for the second quarter of 2026. The data show that Hong Kong recorded a balance of payments surplus of HK$54.6 billion in the second quarter of 2026, equivalent to 6.5% of GDP, with reserve assets increasing by the same amount. In the first quarter of 2026, a surplus of HK$35.2 billion was recorded, equivalent to 4.2% of GDP. In the second quarter of 2026, Hong Kong recorded a current account surplus of HK$96 billion, equivalent to 11.4% of GDP, reflecting that Hong Kong saves more than it invests, allowing it to accumulate external financial assets and providing a buffer during global financial volatility. Compared with the current account surplus of HK$93.1 billion in the second quarter of 2025 (equivalent to 11.8% of GDP), the increase in the surplus was mainly due to an increase in net inflow of primary income and an increase in the surplus on trade in services, while an increase in the goods trade deficit offset part of the increase. Specifically, the goods trade deficit increased from HK$38.3 billion in the second quarter of 2025 to HK$59.1 billion in the same quarter of 2026. Over the same period, the surplus on trade in services increased from HK$30.9 billion to HK$38.5 billion. In the second quarter of 2026, primary income inflows and outflows were HK$664.6 billion and HK$540.9 billion respectively, resulting in a net inflow of HK$123.7 billion, compared with a net inflow of HK$107 billion in the same quarter of 2025. In terms of the financial account, non-reserve financial assets recorded an overall increase of HK$76.8 billion in the second quarter of 2026, equivalent to 9.1% of GDP, while in the first quarter of 2026 they recorded an overall decrease of HK$36.7 billion, equivalent to 4.3% of GDP. The overall increase in the second quarter of 2026 was attributable to a substantial net increase in portfolio investment, while net decreases in other investment, financial derivatives, and direct investment offset part of the increase. Over the same period, reserve assets increased by HK$54.6 billion, while in the first quarter of 2026 they increased by HK$35.2 billion. International Investment Position In terms of the international investment position, at the end of the second quarter of 2026, both Hong Kong's total external financial assets and liabilities were at very high levels, at HK$62,863.5 billion (equivalent to 18.3 times GDP) and HK$43,449.8 billion (equivalent to 12.7 times GDP) respectively, which is a common characteristic of a major international financial centre. At the end of the second quarter of 2026, Hong Kong's net external financial assets (i.e., assets minus liabilities) reached HK$19,413.7 billion, equivalent to 5.7 times GDP, while at the end of the first quarter of 2026 it was HK$18,448.6 billion, equivalent to 5.5 times GDP. Hong Kong's ratio of net external financial assets to GDP is one of the largest in the world, providing a strong buffer for the Hong Kong economy against sudden external shocks. External Debt In terms of external debt, at the end of the second quarter of 2026, Hong Kong's total external debt was HK$17,869.1 billion, equivalent to 5.2 times GDP. Compared with HK$16,630.4 billion at the end of the first quarter of 2026, total external debt increased by HK$1,238.7 billion, due to increases in external debt across all sectors, particularly the banking sector, other sectors, and debt liabilities of direct investment (intercompany lending). As one of the world's major financial centres, Hong Kong has a considerable amount of external debt arising from the day-to-day banking business of the local banking sector. At the end of the second quarter of 2026, the banking sector's external debt accounted for 52.7% of the total. Other external debt mainly comprised external debt of other sectors (31.1%) and debt liabilities of direct investment (intercompany lending) (14.6%).