The Sino-US trade war and the five-month local violent demonstrations have made Hong Kong’s economy worse, and Hong Kong enterprises have been in a desperate situation
According to the latest survey released by HSBC yesterday, 44% of Hong Kong companies expecting business growth are the main driving force for opening up new markets. The survey pointed out that Hong Kong enterprises should adopt international thinking and develop new markets as a strategy to deal with the uncertain trade prospects and economic and environmental challenges.
The 2019 HSBC Business Leadership: The Status Quo, Future and Business Approaches of the Business Sector was released yesterday. The survey interviewed more than 9,100 companies in 35 markets, including 350 Hong Kong companies, to understand the outlook and expectations of the business prospects. The results show that more than one-third of Hong Kong enterprises indicated that they plan to address business challenges by exploring new markets. Among Hong Kong companies that expect sales to grow next year, 44% believe that entering new markets is the main business growth driver.
79% of international trade helps promote innovation
The survey revealed that other common strategies to address challenges include improving product or service quality (30%), investing in innovation (24%), investing resources to improve customer experience (24%), and strengthening cash flow management (22%).
At the same time, Hong Kong companies regard international trade as a business impetus and believe that international trade will help promote innovation (79%), provide new opportunities (77%), and increase efficiency (76%) in the next five years.
Zhao Minzhong, head of HSBC’s Hong Kong business and finance department, said that Hong Kong is an international business center and has been pursuing free trade. The “Free Trade Agreement" and “Investment Agreement" signed by Hong Kong and Australia in March this year are the latest examples. According to the latest survey, Hong Kong companies regard international trade as an opportunity to cope with the challenges brought about by the economic environment. The bank believes that whether it is a trade in goods or services, Hong Kong enterprises will continue to benefit from Hong Kong’s strategic positioning when they seek opportunities in new markets.
Asia Pacific is still the preferred market for expansion
The Asia Pacific region is still the first choice (67%) for Hong Kong companies to trade or expand their markets in the next three to five years. Compared with companies in other markets in the Asia Pacific region, Hong Kong enterprises’ expansion plans are more focused on the Asia Pacific region, which is higher than the Asia Pacific average (55%). Hong Kong companies’ interest in Europe has also seen growth, with 23% of Hong Kong companies considering expanding the European market, up from 18% last year.