Two-thirds HK companies expect steady economic expansion next year: CPA Australia

Nearly two-thirds of Hong Kong businesses expect the city's economy to expand steadily next year, supported by a resilient financial ecosystem and this year's broader recovery, according to a new survey by Certified Practising Accountants Australia.

Sixty-three percent of Hong Kong-based accountants and finance professionals hold a positive outlook for the city's economy, with 54 percent expecting a slight increase, CPA Australia said on Thursday.

Hong Kong's tax system was considered as the largest positive contributor in the coming year, while the institute noted that mainland China's economic growth is a key driver of Hong Kong's economic and business prospects. 

Hong Kong is still regarded as a safe haven for international investors and businesses seeking to manage assets and diversify risks amid geopolitical tensions and fluctuations in external markets.

The institute said that Hong Kong companies plan to place greater emphasis on the local and mainland Chinese markets next year, with the number of companies planning local expansion doubling. In contrast, the interest in expanding into Southeast Asia, Europe and the United States has fallen sharply due to geopolitical uncertainties.

Hong Kong's initial public offering market is expected to continue its strong performance into 2026, with more than 60 percent of respondents expecting that Hong Kong's total IPO fundraising will keep growing in 2026, with projections reaching HK$300 billion.

CPA Australia suggested the government take a series of  measures including an "IPO Connect" scheme, allowing mainland investors to participate in the Hong Kong IPO, while strengthening the city’s position as the preferred choice for Chinese companies expanding globally, aligning with the mainland's "Go Global" strategy.

Income expectations have become more conservative, with 39 percent of respondents expecting income growth in 2026, down from 51 percent last year. 

Additionally, the property market remains sluggish, with more than half of respondents expecting declines in the prices of retail, industrial, and office buildings. The outlook for the residential market is relatively optimistic, though it remains mixed.

The survey, conducted from October 22 to November 21, included 296 accounting and finance professionals in Hong Kong. More than half of the respondents are executives and management, representing various types of companies.

Hannah Wang