Greater Bay Area｜70% of interviewed Hong Kong companies plan to expand business in Shenzhen and Guangzhou, pointing out that "Hong Kong-made" products have advantages

According to the survey "Expanding post-epidemic business opportunities in the Greater Bay Area through the Hong Kong business platform" jointly released by the Hong Kong Export Credit Insurance Corporation and the Trade Development Council, about 70% of the interviewed Hong Kong companies said they would choose to expand their business in Shenzhen or Guangzhou , the ratio is higher than that of Dongguan and Zhuhai.

The survey also found dangers and opportunities for Hong Kong businessmen.

The danger is that Hong Kong companies face three major challenges: low-price competition, ignorance of mainland laws and regulations, and financing and customer credit issues; the opportunity is that Hong Kong companies also have considerable unique advantages in the Greater Bay Area market, including Hong Kong's brand reputation And good at introducing foreign high-quality products.

The survey was conducted in the third quarter of this year, and a questionnaire survey was conducted among 413 Hong Kong traders and manufacturers who have or intend to start domestic sales in the Greater Bay Area.

According to the report, more than 95% of the companies surveyed are facing various challenges, especially the impact of the epidemic on supply chains and production/purchasing activities, and customs clearance issues affecting business operations. Insufficient orders in overseas markets and rising costs also affect business development.

The results show that the cities in the Greater Bay Area that Hong Kong businessmen are most interested in include Shenzhen (73.8%), Guangzhou (68.8%) and Dongguan (43.6%).

They mainly plan to sell products produced or procured in the Mainland in the Greater Bay Area, and import products procured from other places in order to further expand the domestic sales market.

One-third of enterprises said that the mainland market is full of low-priced products, 35.8% said they were not familiar with mainland laws and regulations, product standards, etc., and about one-quarter mentioned that they lacked credit background information of mainland customers or lacked funds to develop the mainland market, and the risk of lending was high (22.0%) and other financing and customer credit issues.

In terms of managing accounts receivable for domestic sales, unlike the business practice of lending money in the Mainland, most Hong Kong chambers of commerce require buyers to pay in advance (57.9%), or choose to bear the risk by themselves (43.6%), and some Hong Kong chambers of commerce purchase credit insurance ( 14.0%).

The interviewed companies believe that Hong Kong has different advantages to expand the domestic market in the Greater Bay Area. 48.4% said that Hong Kong brands or products have a good reputation in the mainland, and 43.3% think that Hong Kong is good at introducing foreign high-quality and trendy products.

The report shows that "whether it is "Made in Hong Kong", "Made by Hong Kong", or "Design by Hong Kong", all products have a good reputation in the Mainland , The HKTDC reminds Hong Kong companies that if they can formulate precise business strategies targeting domestic sales, they can effectively expand the domestic sales market in the Greater Bay Area.

Zhao Minzhong, director of the Credit Insurance Corporation, said that all parts of the world, including Hong Kong and the Mainland, are returning to normal, and economic and trade activities are gradually restarting; at the same time, facing the uncertain overseas markets in Europe and the United States, it is believed that the domestic market can provide a way out for Hong Kong companies, and the Greater Bay Area is one of them. The best springboard.

He pointed out that the Credit Insurance Corporation has always attached great importance to the mainland market, and began to underwrite mainland buyers more than 30 years ago, and the mainland has now become the bureau's second largest insurance coverage country after the United States.

"With the development of the Greater Bay Area in the Mainland, we will continue to support Hong Kong companies to seize the opportunities of the dual cycle and expand the Mainland market."

Liu Huiping, vice president of the Trade Development Council, said that the GDP of the Greater Bay Area reached US$1.96 trillion, and the per capita GDP exceeded US$22,500. The economic environment has become difficult under the challenges of the new crown epidemic, geopolitics, interest rate hikes and inflation , "The Greater Bay Area is clearly a bright spot for corporate business growth."

He said that the HKTDC has always been committed to helping the industry seize opportunities in the Greater Bay Area. For example, its GoGBA "Bay Area Economic and Trade Link" digital platform has been viewed more than 590,000 times since it was launched more than a year ago, which shows that the business community is keen on the business opportunities in the Greater Bay Area. Have a strong interest.

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