The Chinese mainland has its problems but still offers business opportunities for Hong Kong businesses that can afford the uncertainties and risk.
Daniel Poon, assistant chief economist of the Hong Kong Trade Development Council (HKTDC), said central government moves to promote consumption and rural development should create new opportunities for Hong Kong companies accustomed to exporting to overseas markets.
While saying China continues to grapple with tight monetary policy and asset market adjustments, China’s economic fundamentals still remain sound, Poon noted.
Consumer spending is being driven by rising wages and government initiatives to stimulate consumption, he said.
Amid the positive consumption atmosphere, retail sales in the mainland during the first 11 months of 2011 were 17 percent higher than a year ago. Retail sales in the mainland soared by 17.3 percent in November.
Feedback from HKTDC's network in the mainland shows that robust retail sales were registered for most consumer products, covering both basic and luxury items.
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