HONG KONG, July 23, 2020 - (ACN Newswire) - Standard Chartered
and Hong Kong Trade Development Council ("HKTDC") released the
inaugural "Standard Chartered GBA Business Confidence Index"
("GBAI"), the first forward-looking quarterly survey in the market
that looks at the business sentiment and synergistic effects across
cities and industries in the Guangdong-Hong Kong-Macao Greater Bay
Area ("Greater Bay Area" or "GBA"). The index suggests that
respondents expect an evident easing of contractionary pressure in
Q3 after a challenging Q2 due to COVID-19 disruptions.
|
(from left) Kelvin Lau,
Senior Economist, Greater China, Standard Chartered and Nicholas
Kwan, Director of Research, HKTDC at the online press conference of
"Standard Chartered GBA Business Confidence Index". |
According to the survey, the GBAI's 'current performance' index for
business activity stood at 37.0 for Q2-2020, below the neutral line
of 50. This reflects the impact of a COVID-related global recession
on the export-oriented region. However, the 'expectations index'
stood at a much better 47.0, suggesting an expectation of a
broad-based improvement in Q3 versus Q2. In particular, the 'new
orders' sub-index stood above the neutral 50 mark, reflecting an
optimistic view about the new orders in Q3. Although the GBAI
current performance index for credit was at 45.3, the
sub-components indicate lower borrowing costs from both banks and
non-bank financial institutions as well as improvement in banks'
attitude towards lending.
Kelvin Lau, Senior Economist, Greater China, Standard Chartered
said: "The survey result indicates that companies in the Greater
Bay Area expect a better Q3, likely a reflection of the continued
normalisation of activity within China, boosted by aggressive
monetary and fiscal policy easing. This pick-up is driven by
domestic more than external demand, matching the general perception
that China is the first country to begin recovering from
COVID-19."
The GBAI also includes industry and city sub-indices - by industry,
'innovation and technology' is expected to improve the fastest,
followed by 'financial services'; by city, Guangzhou and Shenzhen
are seen to lead the way in the post-COVID rebound, while Hong Kong
is seen to lag. Among companies that plan to expand to other GBA
cities, Shenzhen, Zhuhai and Hong Kong are the top preferred
destinations.
"Shenzhen proved the most resilient in Q2 and is expected to return
to economic expansion in Q3 along with Guangzhou. These cities'
encouraging performance may be because these finance- and
technology-centred cities provide a base for larger companies with
greater sustainability and more cash flow. For intra-GBA expansion,
Shenzhen and Hong Kong are favourable because they are
well-established core cities with high spending power, and Zhuhai
is the closest city to Macau and well connected to Hong Kong via
the Hong Kong-Zhuhai-Macau Bridge," Mr Lau added.
The GBAI is compiled based on a quarterly survey conducted by the
HKTDC in collaboration with Standard Chartered. Every quarter, at
least 1,000 enterprises in key business sectors across the Greater
Bay Area provide valuable feedback on a range of subjects,
including their current business situation and credit conditions as
well as their outlook on these subjects for the coming quarter. The
survey also asks respondents thematic questions about what drives
their business decisions and plans, and how this might shape the
Greater Bay Area's future.
Nicholas Kwan, Director of Research, HKTDC, said: "We are seeing
strong policy support from the central government for turning the
Greater Bay Area into a global business and innovation centre, by
expediting infrastructure connectivity, building advanced
manufacturing and modern services industries, and developing a
high-quality 'living circle'."
"We expect demand for information on this region to continue to
ramp up and the GBAI seeks to fulfil this need by offering timely
and valuable insights into the region's transformation, which will
better equip businesses and policy makers for future planning," Mr
Kwan added.
To download the report of the "Standard Chartered GBA Business
Confidence Index", please visit the website:
https://sc.com/hk/gba/gba-index/.
About Standard Chartered GBA Business Confidence Index
Standard Chartered GBA Business Confidence Index (GBAI) is the
first forward-looking quarterly survey in the market that looks at
the business sentiment and synergistic effects across cities and
industries in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA).
In collaboration with the Hong Kong Trade Development Council, the
GBAI is based on information drawn from quarterly surveys of over
1,000 companies operating in the GBA across different industries,
including manufacturing and trading, retail and wholesale,
financial services, professional services, and innovation and
technology.
The GBAI offers a unique look at a range of subjects in the GBA,
including current business situation and credit conditions, and
outlooks for the coming quarter. It enables investors and
businesses to better understand the current business climate, gauge
future performance and formulate their market strategies in the
GBA.
About Standard Chartered
We are a leading international banking group, with a presence in 59
of the world's most dynamic markets, and serving clients in a
further 85. Our purpose is to drive commerce and prosperity through
our unique diversity, and our heritage and values are expressed in
our brand promise, Here for good.
Standard Chartered PLC is listed on the London and Hong Kong Stock
Exchanges as well as the Bombay and National Stock Exchanges in
India.
The history of Standard Chartered in Hong Kong dates back to 1859.
It is currently one of the Hong Kong SAR's three note-issuing
banks. Standard Chartered incorporated its Hong Kong business on 1
July 2004, and now operates as a licensed bank in Hong Kong under
the name of Standard Chartered Bank (Hong Kong) Limited, a wholly
owned subsidiary of Standard Chartered PLC.
For more stories and expert opinions please visit Insights at
sc.com. Follow Standard Chartered on Twitter, LinkedIn and
Facebook.
About HKTDC
The Hong Kong Trade Development Council (HKTDC) is a statutory body
established in 1966 to promote, assist and develop Hong Kong's
trade. With 50 offices globally, including 13 in Mainland China,
the HKTDC promotes Hong Kong as a two-way global investment and
business hub. The HKTDC organises international exhibitions,
conferences and business missions to create business opportunities
for companies, particularly small and medium-sized enterprises
(SMEs), in the mainland and international markets. The HKTDC also
provides up-to-date market insights and product information via
trade publications, research reports and digital news channels. For
more information, please visit: www.hktdc.com/aboutus.
Source: Standard CharteredHKTDC
Contact:
Standard Chartered Bank (Hong Kong) Limited
Gabriel Kwan / Daniel Ip
Tel: +852 2820 3036 / +852 2820 3871
Email: gabriel.kwan@sc.com / daniel.ip@sc.com
Hong Kong Trade Development Council
Beatrice Lam
Tel: +852 2584 4049
Email: Beatrice.hy.lam@hktdc.org
Copyright 2020 ACN Newswire . All rights reserved. |