Hong Kong

HSBC Navigator provides comprehensive insight into the now, next and how for business, representing the views of over 9,100 business decision-makers across 35 markets. This report gives an understanding of how businesses like yours can continue to grow now and in the future.

Hong Kong looks to the future
Given its small size, Hong Kong is an over-achiever in GDP terms, benefitting from low taxes and its status as a global financial centre1. Hong Kong’s economy has shown signs of slowing recently, partly due to trade tensions2. However, the region benefits from an underlying sense of responsible, sustainable growth.

State of play

Hong Kong adopts an international mindset
Among Hong Kong businesses anticipating sales growth in the next year, the opening of new markets is seen as a key driver of growth (44% of firms state this versus 38% globally) – which goes some way to explaining why businesses are looking to markets beyond APAC.

While a third of Hong Kong businesses are expanding into new markets, just under a third (30%) are focused on improving product and service quality as strategies to overcome threats and business decline.

44 %

Among Hong Kong businesses anticipating sales growth in the next year, the opening of new markets is seen as a key driver of growth (44% of firms state this versus 38% globally)

Strategies to overcome the threats or potential decline of business

Expanding into new markets
34%
Improving the quality of your products or services
30%
Investing in innovation
24%
Investing in the customer experience
24%
Tightening cashflow management
22%
Expanding digital platforms and channels
19%

Vertical integration or shortening the supply chain to ensure its security/resilience  19%
Investing in new skills in the workforce  16%
Investing in better quality raw materials and suppliers 14%
Improving environmental and ethical sustainability  14%
Increasing vigilance to prevent cybersecurity breaches  13%
Investing in employee wellbeing  13%
Investing in data protection  12%
Investing in IP protection  9%
Others  1%
Don’t know  1%

What you need to know

  1. 1

    44% of Hong Kong businesses anticipating growth see entry to new markets as a key driver.

  2. 2

    On a five-year horizon, 61% of companies anticipate sales growth – while 77% think international trade unlocks new opportunities.

  3. 3

    Half of Hong Kong businesses planning changes to their supply chain expect the main benefit to be reduced costs.

What your business can do

  • Consider options for securing working capital. 46% of firms that expect to see sales fall view the inability to attract investment and financing as a major threat.
  • Enhance your customer journey. Slightly more Hong Kong businesses are investing in customer experience than the global average as a strategy to overcome potential declines (Hong Kong: 24%, global: 21%).