Account surplus reach HKD47.6b

It is swinging back.

According to UBS, the current account swung back to a surplus of HKD47.6bn in 3Q13 after registering a deficit of HK$7.0bn in 1H13.

Hong Kong’s current account surplus has since 2009 been persistently narrowing.

Here’s more from UBS:

Hong Kong’s competitive service sector continues to hold up very well, reflected in the persistent surplus in the service account. Hong Kong has been an exporter of capital until recently.

The successive round of quantitative easing by the US has led to the inflows of capital into Hong Kong since 2009. 

Liquidity conditions are turning less favourable. While the interbank rates could stay low for quite some time along with the US rates, retail rates could still edge up if banks’ costs of funding rise.