Hong Kong, 17 April 2023 – (ACN Newswire) – Standard Chartered and the Hong Kong Trade Development Council (HKTDC) today released the GBA Business Confidence Index (GBAI) for Q1 2023. Over 50 prints since Q4 2021. The expected index jumped to 61.5, a 16.4-point gain, the largest on record since his GABI started in the second quarter of 2020. GBAI beats expectations The Guangdong-Hong Kong-Macao Greater Bay Area (GBA) has regained confidence as normal travel between Hong Kong and mainland China has fully resumed.
Standard Chartered’s Greater China Senior Economist Kelvin Lau and HKTDC Research Director Irina Huang announced today (April 17) at a press conference that the latest GBA Business Confidence Index (GBAI ) was announced.
Sub-indexes surge across the board
Both the current performance and expectations sub-indexes of business activity across all industries rose. Financial services (59.8) and innovation and technology (54.3) outperformed their current performance index. On the other hand, professional services (65.2, up 19.1 points), manufacturing and trade (61.3, up 17 points) and financial services (67.4, up 16.9 points) showed significant improvements in the expectations index.
Dongguan, Guangzhou and Shenzhen lead the bulls
Current performance and expectations sub-indexes recovered across all GBA city business activities. Foshan (55.1), Dongguan (53.5) and Hong Kong (51.6) performed better in the near term, but the strongest gains in expectations were in Dongguan (69.6, up 32.5 points) and Guangzhou (67.7, up 24.6 points). Recorded. Shenzhen (60.8, up 13.7 points).
A sustained recovery is expected
“After the reopening earlier this year, economic activity resumed quickly as the mainland quickly gained herd immunity,” Kelvin Lau said. It is reflected in the ‘business reliability’ level of the companies that are doing it.” Senior Economist, Greater China, Standard Chartered.
“With government policies and support for reopening borders, there is little reason to doubt the sustainability of the post-COVID recovery so far. It seems that there is still a lot of room in the business to catch up and get back on trend,” he added.
Hong Kong sub-index peaked
HKTDC Research Director Irina Fan said: to those interviewed. “
Additionally, two sub-indices for Hong Kong reached their highest levels since the GBAI was launched in Q2 2020, reflecting local businesses’ optimism about Hong Kong’s outlook. “
Growth in industrial production, services and fixed asset investment all accelerated again in the first two months of the year, she added. “A recent set of encouraging macro data illustrate positive sentiment and confirm that the Chinese economy is out of the crisis post-COVID,” she said.
Return to normal by 2024
The GBAI is the market’s first forward-looking quarterly survey that looks at business sentiment and synergies across cities and industries across the GBA. It is compiled from a survey of over 1,000 GBA companies and covers the manufacturing and trading, retail and wholesale, financial services, professional services, innovation and technology sectors. The index enables investors and companies to better understand the current business environment, assess future performance prospects and formulate market strategies for the GBA.
Nearly two-thirds (65%) of those interviewed said the easing of mainland pandemic measures would have a positive impact on their business for the rest of the year. More than half (53%) of respondents say they have raised their business goals since normal travel resumed earlier this year. About 60% of them expected to return to or exceed pre-COVID levels in the fourth quarter in terms of workforce, utilization, orders and revenue.
While consumption on the mainland is expected to improve, respondents continue to be concerned about rising raw material costs, geopolitical tensions and increasing competition within the industry. They hope that increased domestic demand, new GBA-specific policies, attracting foreign investment and supporting the private sector will further improve the business operating environment.
Related Documents
– Standard Chartered GBA Business Confidence Index Report: https://bit.ly/3A3GmKZ
– HKTDC Research: https://research.hktdc.com
– Photo download: https://bit.ly/3mynG2Y
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