The mainland and Asean countries have emerged to be the most preferred destinations for Hong Kong firms planning to expand overseas, a United Overseas Bank survey has shown.

The survey interviewed 557 business owners and executives of small, medium and large-sized enterprises in Hong Kong, and found 70 percent of the firms were interested in expanding overseas.

About half of the respondents disclosed a preference for the mainland and 39 percent for Asean countries with Singapore, Thailand and Vietnam in particular.

Over 60 percent of the respondents held a positive outlook for this year despite recent challenges.

Around 83 percent said they still suffered from inflationary pressure, including expensive operating and raw material costs amid shrinking profits.

A separate survey by Bain & Company and Hang Seng Bank (0011) showed over 40 percent of their customers in the Greater Bay Area would like to use cross-boundary financial services if they were not required to cross the border physically.

But appetite for cross-border financial products may decline for the next three years.

Potential customers from the mainland expressed less interest in purchasing cross-border wealth management and insurance products, representing a fall of 23 and 16 percentage points from two years ago. Also, fewer Hong Kong customers were interested in mainland wealth management and insurance products, marked by a drop of 18 and 8 percentage points respectively.

https://www.thestandard.com.hk/section-news/section/2/253178/Firms-eye-China,-Asean-for-expansion

Category: China