Aerial panoramic photo taken on Sept 12, 2020 shows the Hong Kong-Zhuhai-Macao Bridge in South China. (CHEN YEHUA / XINHUA)
Most small-and-medium enterprises on the Chinese mainland and in the Hong Kong Special Administrative Region have a strong demand for cross-boundary financial products and services as they plan to invest considerably in the Guangdong-Hong Kong-Macao Greater Bay Area, according to a research report published recently by Bain & Company and Hang Seng Bank.
Up to 80 percent of mainland SMEs and 60 percent of their HKSAR counterparts, who participated in the survey, said they intend to use more than 15 percent of their revenues for investments in the Greater Bay Area this year. By comparison, publicly-listed mainland companies allocated an average of just 6 percent of their revenues for capital expenditure between 2017 and 2021.
About half of the mainland SMEs said they’re likely to expand to Hong Kong or Macao, while about 75 percent of Hong Kong SMEs said they intend to explore the mainland market further, according to a research report published recently by Bain & Company and Hang Seng Bank
Entitled “Greater Bay Area SME Report: A Story of Resilience and Opportunity”, the report interviewed leaders of more than 460 SMEs in the Greater Bay Area.
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The respondents said they’re also ready to expand cross-boundary businesses following the resumption of normal travel between the mainland and the Hong Kong and Macao SARs. About half of the mainland SMEs said they’re likely to expand to Hong Kong or Macao, while about 75 percent of Hong Kong SMEs said they intend to explore the mainland market further.
As cross-boundary business activities surge, the respondents said there’s strong demand for cross-boundary financial products and services with regard to lending and professional wealth management. Nearly half of the mainland SMEs are interested in or are already using wealth management services from Hong Kong.
The report showed, however, barriers remain, including a lack of understanding of cross-boundary products and inconvenience in the application process.
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In addition, the respondents’ ownership of cross-boundary wealth products last year had decreased compared to 2020. Since the COVID-19 outbreak, SMEs have shifted their preferences, prioritizing financial stability and cash flow over other factors, the survey shows.