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  |  
|                                                                  |  |                           |   |  |       |   |  |       |   |  |       |   |  |       |  

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