However, the banking sector’s ED dipped.

Hong Kong’s gross external debt (ED) went up by $65b to $12.76t in Q2 from $12.69t in Q1, according to data from the Census & Statistics Department (C&SD).

This was mainly attributable to the increases in debt liabilities in direct investment (intercompany lending) and ED of other sectors, except for the banking sector which saw its ED dip.

Also read: Lower investments loom as private debt swells 228.7% of GDP in Q2

C&SD noted that as one of the world’s major financial centres, the local banking sector largely contributes to the ED, arising through normal banking businesses. The sector accounted for 61.3% of Hong Kong’s ED in Q2.

About 22.3% of the total figure comprises of the other sectors , whilst the remaining 16.1% are of debt liabilities in direct investment.