About half of Hong Kong SMEs eye Asia expansion: survey

About half of small- and medium-sized enterprises in Hong Kong are interested in expanding business in Asia and the city has earmarked HK$420 billion to help them transform.

According to the latest Standard Chartered Hong Kong SME Leading Business Index, 20 percent of respondents plan to expand into other regions within the next year, with nearly 60 percent favoring the Chinese mainland and almost half targeting Asian markets.

The survey also highlighted that sales channels, platform operations, and overseas regulations are key areas where SMEs seek the most interest or require assistance. 

Hong Kong Association of Banks chairwoman Mary Huen Wai-yi noted that beyond financing, SMEs hope banks can provide more advisory and support services to help them build networks internationally.

To help small businesses with upgrades and transformation, a dedicated funding pool involving 18 banks has expanded from HK$370 billion last year to over HK$420 billion, said Arthur Yuen Kwok-hang, deputy chief executive of the Hong Kong Monetary Authority.

The HKMA is actively encouraging banks to develop regional expertise and networks in the 10 members of the Association of Southeast Asian Nations, which has been Hong Kong’s second-largest trade partner, Yuen added.

Meanwhile, Undersecretary for Commerce and Economic Development Bernard Chan Pak-li said that the government will continue encouraging mainland companies to set up regional headquarters in Hong Kong to facilitate their global expansion, as they are using the city as a platform to manage global supply chains.