shaking the status of the international business center, Chao Guoming: the chaos continues to lose all the people
The riots have lasted for more than two months, and the impact on various industries in Hong Kong has gradually emerged, and the economy is in danger of falling into recession. According to a survey conducted by the Hong Kong Small and Medium Enterprises Chamber of Commerce, more than 70% of SMEs surveyed said that the riots caused business to fall, with nearly half of the declines ranging from 20% to over 50%. More than 40% of the companies surveyed said they suspended investment or expansion. At the same time, the riots have caused the outside world to think that Hong Kong is in good security. Many countries and regions have issued travel warnings to Hong Kong. Most of the respondents believe that Hong Kong will be shaken as an international business center and financial center. The president of the association, Chao Guoming, said that the riots have already hit the Hong Kong economy. If there is a chaos, there may be bankruptcies and layoffs. The community will seek solutions in a peaceful and rational way. Otherwise, Hong Kong will become a loser.
In an interview with Ta Kung Pao, Mr. Nest said that he believed that this was the first survey on the impact of riots on Hong Kong enterprises and could more fully reflect the reality and attitude of many SMEs. According to the survey, 72.6% of SMEs surveyed said that the violence caused the company’s business to fall. As for the decline in business, 27.9% said that the decline ranged from 10% to 20%; 26.5% said that the decline was between 20% and 30%, while the business dropped 40% to 50% and also 10.5%, and another 10% of respondents It is said that business has fallen by as much as 50% or more. This shows that SMEs are being hit by different degrees and the situation is worrying.
Nearly 50% of enterprises suspend investment
In addition to the decline in business, the impact of most SMEs is the decline in consumer sentiment, followed by long delivery times, employees unable to go to work on time, and foreign customers are reluctant to come to Hong Kong to negotiate business. The most worrying thing is the frequent violent incidents. After many countries and regions issued travel warnings to Hong Kong, 93.6% thought that they would shake Hong Kong’s status as an international business centre and financial centre.
I was asked how to respond if violence continues. 46.1% of respondents indicated that they would suspend investment or expansion, and wait for the situation to stabilize before re-planning. Other methods selected by the most respondents include: constant change, divestment, and consideration of investment outside Hong Kong to diversify risks. At the same time, 96.3% of respondents believe that the recent series of violent activities, combined with the impact of the trade war, have hit the Hong Kong economy. As for how the government is expected to assist enterprises, the most respondents hope to reduce profits tax, followed by increasing the amount of BUD funding and the scope of funding, and reducing operating expenses.
Fear of bankruptcy and layoffs
Chao Guoming pointed out that the Sino-US trade war has been heating up and has already hit many exporters. The impact of the recent violent incidents on Hong Kong’s economy is constantly emerging. The number of visitors to Hong Kong has fallen to nearly 50% in August. There are hotels. The restaurant has asked employees to take unpaid leave; both the retail and catering surveys have reported large double-digit declines in recent months. He admits that if the situation worsens, there is concern that there will be a wave of corporate closures and massive layoffs.
“The trade war has lasted for 2 years and many small and medium-sized exporters have been disabled. Some export orders have fallen by 30%, causing Hong Kong’s exports to fall by 3.9% in the first seven months. It is expected that the export will meet in the whole year, plus a series of The riots have dragged down the business of retail, catering, transportation, hotels and other industries. As a result, many SMEs have begun to hold back. If there is no more foreign businessmen and tourists coming to Hong Kong, the consumption of the public will fall. Tired and tired, playing dead Hong Kong, destroying the achievements of several generations of efforts, if you lose the status of an international business center and financial center, it will hurt the whole world and harm the whole people." For the current situation, the nest country is obviously worried. .
Therefore, Chao Guoming is extremely eager to see a peaceful and rational way to start a dialogue and jointly find solutions to find a way out for Hong Kong’s current difficulties. In addition, the government recently announced a support measure of 19.1 billion. He believes that the measures strongly support SMEs. However, some of the relevant measures will be implemented as soon as possible in October. However, according to the survey and members’ reports, the SME business has been hit hard. Some enterprises with limited funds may not be able to support it until October. Therefore, I hope the government can introduce some immediate results. Short-term measures.