6:00AM New York, 6:00PM Hong Kong – Hong Kong surplus rose to HK114.5 billion in 2007.

Hong Kong stock averages rose led by financial stocks on strong earnings results posted by the Industrial and Commercial Bank of China and property company, Wharf.

Market Sentiment

In Hong Kong trading the Hang Seng Index rose 0.68% or 152.49 at 22,617.01 points, and the China Enterprises Index of Hong Kong-listed mainland companies, or H shares, jumped 1.14% or 133.22 to 11,860.22. In Shanghai trading, CSI 300 Index gained 0.22% or 860 to 3,914.37.

Daily turnover on main-board was HK$89.91 billion compared to HK$100.6 billion yesterday.

Hong Kong BoP account surplus rises to HK 114.5 billion

The Census and Statistics Department reported yesterday that fourth quarter surplus in 2007 was HK$78.3 billion or 17.5% of GDP, compared to HK$13.9 billion in the third quarter.

Current account surplus in the quarter was HK$59.0 billion or 13.2% of GDP, less than HK $63.7 billion or 15.4% of GDP in the third quarter of 2007.

Also a net inflow of financial non-reserve assets of HK$1.1 billion was recorded in the fourth quarter of 2007, against a net outflow of HK$73.3 billion in the third quarter of 2007.

In the year 2007 total surplus was HK$114.5 billion or 7.1% of GDP, compared with a surplus of HK$46.7 billion or 3.2% of GDP in 2006. In the year current account surplus was HK$213.7 billion or 13.3% of GDP in 2007, from HK$178.2 billion or 12.1% of GDP in 2006.

In addition, a net outflow of financial non-reserve assets eased to HK$146.6 billion in 2007, less than HK$160.3 billion in 2006.

Gainers & Losers

Financial stocks advanced after Industrial and Commercial Bank of China reported yesterday that net profit increased 64.9% to Rmb82.3 billion driven by strong growth in net fees and commission income.

HSBC advanced 0.24% to HK$127.30, Industrial and Commercial Bank of China gained 2.88% to HK$5.35 and Bank of China surged 1.85% to HK$3.30 on higher fourth-quarter profits.

The world’s largest mobile telecom operator gained 0.71% to HK $113.30, while China Life, which posted a 42% increase in second-half 2007 profit, closed down 0.18% at HK$27.40.

Henderson Investment closed up at HK$0.91, while its parent Henderson Land advanced 2.4% to HK$55.30. Henderson Investment announced after the market closed that it had received a bid from a joint venture partner to buy assets of the firm for an undisclosed amount.

Property company Wharf rose 0.53% to HK$37.95 after it reported a 22% increase in profit to HK$13.14 billion for 2007. However, Cheung Kong fell 0.73% to HK$108.4 ahead of its earnings announcement.

Commodity stock Jiangxi Copper Co Ltd slid 1.78% to HK$14.34 after the company reported that it posted a 12.4% drop in profit in 2007 to Rmb 4.15 billion missing analysts expectations of Rmb 4.5 billion to Rmb 4.6 billion.

Oil refiner PetroChina also declined 1.32% to HK$9.69.