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Greater Bay Area’s small businesses optimistic about economic prospects as Hong Kong-mainland China border reopens
- More than two thirds of SMEs surveyed by Bain & Co expect long-term economic growth to be similar to or stronger than historical growth and are ready to invest
- However, many raised concerns about their ability to secure loans within the zone because they lack collateral or the required documentation
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Yujie Xuein Shenzhen
Small- and medium-sized enterprises (SMEs) located in China’s Greater Bay Area (GBA) have strong expectations for the region’s economy and plan to invest there in the long term, according to a Bain & Company survey.
The survey, released on Tuesday with contributions from Hang Seng Bank, quizzed some 460 SMEs in the bay area about their financial services needs and preferences in the short term, through 2025, and in the longer term, from 2025 to 2035.
It found that overall, they are confident about the region’s long-term prospects. More than two thirds expect economic growth in the long run to be similar to or stronger than its historical growth and said they are ready to invest there.
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About half of the mainland SMEs and a third of the Hong Kong firms believe the bay area’s short-term growth rate will be slower than their pre-pandemic expectations.
About 80 per cent of the mainland Chinese companies surveyed and 60 per cent of those in Hong Kong plan to invest 15 per cent or more of their annual revenues this year.
Most of the SMEs expressed enthusiasm about the government’s interconnectedness programmes and would like them to be implemented faster.
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