HK$106.6b surplus in balance of payment

Hong Kong has recorded a HK$106.6 billion surplus in its balance of payment account in the third quarter this year, which is 25.3 percent of GDP, according to government figures released yesterday.

However, the latest figures lag behind the HK$143.1 billion, or 36.6 percent of GDP, in the second quarter.

At the end of September, Hong Kong's gross external debt amounted to HK$5.11 trillion. Compared with the end of June, gross external debt increased by HK$218.1 billion.

BoCom Int'l in overseas expansion, capital boost

BoCom International (Asia) Ltd, a unit of Bank of Communications, is studying a plan to set up sales operations in Singapore, Europe and the United States by acquisition or recruitment. The investment banking unit of China's fifth-largest lender is also exploring opportunities to form a securities joint venture in China, BoCom International Managing Director Simon Hua told Reuters yesterday.

The company is expanding its investment banking and direct investment businesses, with an aim to become one of the top 10 investment banks in Hong Kong in the next five years, Hua said, adding that BoCom International has applied with its parent company to boost its capital. BoCom International also plans to launch its first direct investment fund with a focus on high growth industries in the first quarter of 2010, he said.

The investment banking company will focus on local business first, but will also explore the option of setting up a joint venture with mainland securities firms, he said.

HKD remains weak amid corporate USD demand

The Hong Kong dollar remained weak against a broadly firmer US dollar, despite a rebound in the stock market. The local currency traded between 7.7552 and 7.7570, near Friday's low of 7.7585 in New York trade - its weakest since March 5. Hong Kong's de facto central bank said on Monday it was not worried about an outflow of capital, attributing outflows this month to repatriation of money raised in stock market listings and year-end demand by companies for US dollars. A dealer at a regional bank said thin pre-holiday trade had exaggerated price movements, and forecast the USD/HKD spot rate could test 7.7600 in the coming sessions.

Sands China may have sales of $5 billion in 2010

Sands China Ltd, the casino operator with the second-biggest market share in Macao, may have sales of $4.5 billion to $5 billion next year, according to Sheldon Adelson, the billionaire chairman of Las Vegas Sands Corp, who made the forecast in an interview at the construction site for a $5.5 billion casino resort in Singapore Monday. Sands China had sales of $3.05 billion in 2008, according to Bloomberg data. Adelson, 76, didn't comment on the 2009 results.

Las Vegas Sands Corp is expanding in Asia, betting that rising incomes may fuel gambling and retail spending, Adelson said. Sands China, its Macao unit, raised $2.5 billion last month in a Hong Kong initial public offering to repay loans and resume construction the city, the world's biggest gambling hub.

China Daily/Agencies

(HK Edition 12/23/2009 page4)