Exhibit 7.4

MTR Corporation Limited

Computation of

Ratio of Earnings to Fixed Charges

Based on US GAAP

(Expressed in millions of HK$)

	Year ended December 31(1)
	2001		2002		2003		2004		2005
Net income in accordance with US GAAP	4,468		3,261		1,369		3,874		5,674
Adjustments:
Income tax under HK GAAP	868		611		795		1,130		1,549
Share of non-controlled subsidiaries’ taxation under HK GAAP	—		3		1		5		7
US GAAP adjustments related to taxes:
Deferred tax accounting	(141	)	128		15		—		—
Tax effect of adjustments	157		(15	)	(685	)	(357	)	(597	)
Income before tax in accordance with US GAAP	5,352		3,988		1,495		4,652		6,633
Fixed charges:
Interest expenses	1,870		1,748		1,636		1,470		1,447
Amortization of debt discount or deferred debt costs	53		23		24		32		30
Representative portion of interest in operating lease expenses(2)	5		4		4		3		3
Total fixed charges (B)	1,928		1,775		1,664		1,505		1,480
Less: fixed charges capitalized	1,029		621		104		48		115
	899		1,154		1,560		1,457		1,365
Earnings before taxes and fixed charges (A)	6,251		5,142		3,055		6,109		7,998
Ratio of Earnings to Fixed Charges (A)/(B)	3.24		2.90		1.84		4.06		5.40

(1) Due to the retrospective adoption of certain new HKFRS, restatement of the 2001, 2002, 2003 and 2004 financial data was necessary. See Note 3 of Notes to the Financial Statements.

(2) The balance represented one third of operating lease expenses of the Group.