1/11/2017-2

Standard Chartered SME business index hit a two-year high

The Hong Kong Productivity Council announced in the fourth quarter that the Composite Index of Standard Chartered Hong Kong Small Business Leading Business Index rose to a two-year high of 46.5 points, a rise of 2.2 and 4 respectively over the previous quarter and the same period of last year. The index of the retail industry sub-sector for the same period Rose to two-year high.

Investment intentions earnings performance is still underperform

Among the five components of the Composite Index, the “Hiring Intentions" remained positive at 52.5 while the “Intentions", “State of Business", “Profit Performance" and “Global Economy" were still at 50’s rise and fall Below the dividing line. The three major industry sub-indices continued to hover at a level of 40 while the manufacturing industry edged down 0.8 to 41.3, mainly due to a decline in investment intentions. The import, export and wholesale sectors soared 4 to 42 while retail sales rose to a two-year high of 42.9. In addition, the proportion of SMEs expected to have an increase in the cost of raw materials increased from the previous quarter but the rental and wage costs did not change significantly.

Standard Chartered Greater China Senior Economist Lau Kin-hang believes that while improving the sub-index more encouraging, reflecting the positive impact of external power. Both the profitability indices of the import and export trades and of the wholesale and retail sectors rose quarterly, reflecting the impetus given by the real economy to the retail market. The steady and steady growth of Western economies coupled with the expected moderate inflation will allow the market to cope with the rate hike by the U.S. Federal Reserve. Market expectations After the 19th National Congress of the Communist Party of China, the government will continue economic policies and help maintain business confidence. The proposed two-tier system of profits tax will ease the tax burden on SMEs and is expected to further boost the market sentiment in the coming year.

However, he also pointed out that after the recovery of Hong Kong’s exports this year, as exports from other parts of Hong Kong complete their inventories one after another, exports may have a chance to slow down next year.

The survey also found that 85% of the interviewed SMEs indicated that they had accounts receivable in the past three months, of which 67% of the accounts receivable were higher than or equal to the same period of turnover, while the turnover was less than 100000 Yuan, the proportion of the situation encountered up to 93%.

Advocating the use of electronic payments to reduce receivables

Huang Jiawei, the general manager of HKPC (Information Technology), believes that the impact of delayed receipts on SMEs can not be ignored. SMEs should make good use of electronic payment to help collect small loans.

According to the survey, nearly 40% of SMEs have invested over 500,000 yuan in the past year. More 20% of the respondents have invested over $ 1 million in investments in developing new business models (53%) and business development (48) %), While the application of technology (25%) is the lowest. Vice-President of HKPC (Business Management) Lao Shao-chun pointed out that it is the general trend of the times to promote competitiveness through innovative technologies. SMEs should make good use of them.

HKPC’s “Creative Space" was recently launched to provide technology and technology platforms for SMEs to help them develop innovative ideas into product prototypes or commercial products.