These are the best and worst performing sectors in Hong Kong according to StandChart's SME Index

Finance and Insurance was the best performing sector for the first quarter.

The “HKPC SME Support” announced the Standard Chartered SME Index for Q1 2024. According to the report, the overall index retreated by 3.9 to 43.7 in Q1 2024.

Of the five component subindices, only Investment Sentiment remained stable (48.8) whilst Profit Margin, Business Condition, Global Economy, and Recruitment Sentiment all declined, representing a weakened confidence in SMEs’ Q1 2024 business turnover.

In 11 business sectors, Finance and Insurance produced the best performance in Q1 followed by Social and Personal Services. 

In contrast, larger drops were recorded for Accommodation and Food Services, Import / Export Trade and Wholesale, Professional and Business Services, Information and Communications and Retail. 

According to Dr Lawrence Cheung, Chief Innovation Officer of HKPC, the business environment remains weak amongst local SMEs because the global economy is still in recovery.

Kelvin LAU, Senior Economist, Greater China, Global Research, Standard Chartered Bank (Hong Kong) Limited said the silver lining is SMEs’ recruitment and investment appetite remained relatively stable compared with the previous quarter.

"This bodes well for the city’s growth driver to continue shifting gradually from domestic-oriented sectors to the more externally oriented ones as the year progresses, which would help extend Hong Kong’s modest recovery trajectory," Lau added.