Aerial photo taken on May 31, 2022 shows the Two International Finance Centre (IFC) (top left) and the International Commerce Centre (ICC) (right) in south China's Hong Kong. (PHOTO / XINHUA)

Over 60 percent of Chinese mainland enterprises eyeing overseas business opportunities plan to leverage Hong Kong as a platform to access professional services, according to a survey released by the Hong Kong Trade Development Council on Tuesday.

This represents an increase of 12 percent compared with 2019, when only about 50 percent of such companies expressed a desire to use Hong Kong’s professional services to expand overseas.

A survey released by the Hong Kong Trade Development Council showed that 83.9 percent of the enterprises are facing challenges, such as those relating to geopolitical tensions, insufficient market demand and difficulties in securing financing

The services they require include market promotion; product testing and certification to meet standards for overseas markets; corporate environmental, social, and governance performance enhancement, etc., the study found. 

For the survey, 791 mainland enterprises based in the Yangtze Delta region and Guangdong-Hong Kong-Macao Greater Bay Area were interviewed between May and July. 

“In more specific terms, most Greater Bay Area-based businesses saw Hong Kong as their preferred service provider locale, while their Yangtze River Delta counterparts divided their needs more or less evenly across Hong Kong and Shanghai,” said Wing Chu, principal economist with HKTDC Research.

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The study found that 90 percent of respondents plan to expand their business overseas within the next one to three years, with their main areas of focus being on logistics and transport, marketing and sales, factories and overseas procurement.

Chu noted that around 70 percent of surveyed enterprises expressed an intention to expand their businesses into member countries of the Regional Comprehensive Economic Partnership, while 64.3 percent hope to venture into emerging markets along the Belt and Road, including in the Middle East, Central and Eastern Europe, South America and Africa.

RCEP is a free trade agreement between the member nations of the Association of Southeast Asian Nations and five other countries, including Australia and China. The agreement came into force on Jan 1, 2022.

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The survey results also showed that 83.9 percent of the enterprises are facing challenges, such as those relating to geopolitical tensions, insufficient market demand and difficulties in securing financing.

Irina Fan Yuen-yee, director of HKTDC Research, said: “This survey more than confirms Hong Kong’s status as a ‘super-connector’, one uniquely well-positioned to help mainland companies make good on their global expansion plans.”

“Within the shifting global economic landscape, Hong Kong’s well-established business platform remains a preeminent resource. The city’s extensive array of premium financial and professional services and comprehensive international network make it the perfect partner for any business looking to optimize its outcomes within the RCEP region, along the BRI routes or, indeed, pretty much anywhere else in the world,” Fan said.

Legal and financial experts told HKTDC that areas in which Hong Kong could help mainland businesses to expand into foreign markets include negotiating with overseas partners, overseeing legal, investment and general business arrangements; financing arrangements, providing project valuations and meeting due-diligence obligations; and assisting with tax planning, risk management and compliance with overseas regulatory requirements.

tianyuanzhang@chinadailyhk.com