Hong Kong's trade confidence has plunged to lows not seen since the global financial crisis that began in 2008 as fears of another slowdown start to hit home.
An HSBC survey of 6,344 exporters, importers and traders in about 20 markets in July showed that the confidence of Hong Kong firms was at 95. A number above 100 indicates optimism.
The survey began in June 2009 at the height of the last crisis. The confidence level among Hong Kong traders at the time was recorded as 93.
This year, Hong Kong entrepreneurs were the most pessimistic of the eight Asia-Pacific markets surveyed, with mainland China, Australia, Singapore, Vietnam, India, Indonesia and Malaysia all recording positive readings above 100.
Albert Chan Leung-choi, HSBC head of commercial banking, said yesterday that confidence had been hurt by a continuous flow of bad news from abroad.
Small and medium-sized enterprises 'have bigger challenges in the third quarter of this year', he said. 'Overseas markets are shrinking, consumer demand has weakened in Europe and the United States and orders are lower.'
Mainland SMEs fared a little better, with confidence falling from 114 in the first-half of this year to 100. The confidence of entrepreneurs in Hong Kong and mainland China fell below the Asia-Pacific average of 112.
