CITY analysts have broadly supported the findings of the IBCA sovereign ratings report on Hong Kong. 'Hong Kong is at the mouth of the biggest growth region in the world,' said Ian McFarlane, regional strategist at Asia Equity. The IBCA report, which awarded the territory an A-plus rating, was reflective primarily of the belief that the handover of sovereignty would be smooth, the agency said. IBCA noted that the deterioration in the territory's current account needed to be monitored. Mr McFarlane said that a principle cause was that economies thoughout the region were addressing an infrastructural bottleneck and that capital goods imports into the region were for infrastrucure rather than traditional sectors such as manufacturing, making payback periods longer. Some analysts said Hong Kong had more to gain from the reversion to Chinese rule than it had to lose. 'It is the old goose theory. You won't kill it if it lays the golden egg,' said one analyst. Mr McFarlane disagreed: 'The only negative is in the political arrangements, but because the Hong Kong economy is fairly unregulated, it has been able to absorb shocks in the past quite well.' Nigel Barry, head of the Far East desk at Dunedin Fund Managers, said Hong Kong at the macroeconomic level was positive, and that jitters such as that over the currency peg in the wake of the Mexican peso crisis had proved unfounded.