ECONOMY | Staff Reporter, Hong Kong

China plays key role in Hong Kong's business growth: study

Hong Kong’s recovery is dependent on local and global economies.

China seems to play a key role in Hong Kong’s business growth, according to Randstad’s Market Outlook and Salary Snapshot 2021 study.

Randstad points out that they see China’s five-year plan to double the economy by 2035 to have a knock-on effect on Hong Kong’s growth potential. The study also said that as the region’s financial powerhouse, Hong Kong SAR’s recovery roadmap will largely depend on both local and global economies, including the ability of western countries to weather through COVID-19 during this critical winter season. 

Since the gradual return to offices, the study noted that growth in business and consumer confidence since Q4 2020 is a positive indication on what to expect this year.

“The city-state’s roadmap to becoming a Smart City, as well as the further development and integration of the Greater Bay Area announced in the fourth policy address will create more opportunities for the local workforce,” Randstad said.

The National Public Offering Group expects Hong Kong to record 99 new listings ($213.8 billion) by the end of the third quarter in 2020, a 67% increase in proceeds raised from the same period in 2019.

The growth the study observed seems to focus on the technology sector. It pointed out that it will create new business opportunities, not just for the financial services industry, but also e-commerce (retail), life sciences, manufacturing and supply chain in the Greater Bay Area.

“This growth will also facilitate talent mobility within the Asia Pacific region. With a greater domestic focus, we saw more opportunities for the local workforce, particularly those with regional experience and who are multilingual (Chinese, English and Cantonese). The new jobs in the Greater Bay Area also present attractive career development opportunities and highly competitive salaries,” Randstad said.

“There are some reservations among the local talent pool on relocating to mainland China for work, such as high income tax rates as well as cultural fit. However, we have seen more Chinese companies setting up operations in Hong Kong SAR, which appeals to local talent who have relevant work experience and are business proficient in Mandarin,” they added.

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