Hong Kong firms shift to premium services as mainland rivals catch up

Partnerships become key to understanding local markets and meeting regulations.

Hong Kong companies expanding into Mainland China's healthcare and financial service markets are focusing on specialised expertise and premium services as mainland rivals improve their services with government backing.

“Mainland companies, supported by government policy, are moving quickly, particularly in smart eldercare infrastructure and platform ecosystems,” Alberto Vettoretti, managing partner at Dezan Shira & Associates, told Hong Kong Business.

“To stay ahead, Hong Kong firms need to differentiate through cross-border expertise, regulatory credibility, and premium service standards rather than competing on scale or price alone,” he said in an emailed reply to questions.

Vettoretti said opportunities remain strongest in wealth management, retirement planning, private healthcare, insurance, and healthcare technology.

As competition grows, Hong Kong firms are relying more on mainland partners to enter markets and reach customers.

“Usually, these are collaborative models with mainland Chinese registered businesses,” said MingYii Lai, a senior consultant at China-focused market research firm Daxue Consulting.

She noted that Hong Kong firms rarely expand alone in healthcare, insurance, and wealth management because local partners help them meet regulations, understand local markets, and build customer trust.

Vettoretti said local partners could also help firms secure approvals, manage workers, and navigate pricing and operating conditions.

Mainland regulations and differences between cities make expansion difficult. Customers seeking some financial services may still need to travel to Hong Kong to complete identity checks, whilst healthcare providers must meet local licensing requirements.

“It’s very hard for them to standardise everything,” Lai said.

Both consultants said face-to-face meetings remain important despite wider use of digital tools, particularly for healthcare, insurance, and wealth management services.

Vettoretti expects links between Hong Kong and mainland service markets to deepen, particularly in cross-border healthcare, elderly care, and professional services as Greater Bay Area programmes expand.