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Hong Kong small and medium-sized enterprises remained cautiously optimistic outlook on the business environment in the first quarter of 2026, despite a slight deterioration in sentiment, according to a quarterly survey conducted by the Hong Kong Productivity Council.
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The Standard Chartered Hong Kong SME Leading Business Index fell to 43.9 in the January–March period, down 0.6 points from the previous quarter, remaining below the 50-point threshold that separates positive from negative outlooks.
Hunter Chan, Greater China economist at Standard Chartered, said the reading remained above the 2025 average of 42.9.
He added that the “Global Economy” sub-index rose 3.8 points, aided by easing China–US trade tensions since late October, while SMEs have grown more cautious on business conditions and profit margins.
Industry Index for ‘Information and Communications’ increased significantly, the only industry to register an above-50 reading, likely benefiting from the global artificial intelligence boom, Chan noted.
Separately, HKPC chief digital officer Edmond Lai Shiao-bun said nearly 60 percent of SMEs that have adopted AI are now using more than one type of AI tools, indicating that AI is becoming a cornerstone for enhancing competitiveness and driving demand for integrated AI solutions.
HKPC developed a multipurpose AI platform, which delivers tailored, integrated solutions to meet the needs of different industries, reducing users’ time for developing AI applications, helping SMEs better seize the opportunities, Lai said.
