Businesses in Hong Kong are gearing up to expand and hire more employees next year amid expectations of higher revenue in a recovering economy, according to a survey by a professional accounting body.
More than half of Hong Kong-based executives, accountants and other finance professionals expect a revenue increase at their firms next year, and hiring intentions have reached their highest level since 2020, CPA Australia said on Thursday.
Underpinning this optimism is a positive outlook for the city’s economy, with 63 per cent of respondents expecting growth in the coming year, according to the survey of 568 executives in October and November. Hong Kong’s lenient tax system was perceived as “the largest positive contributor” to the economic and business environment, while the first US rate cut in four years in September also helped. Weakening consumer demand and US-China tensions emerged as the two biggest challenges.
“The survey findings reflect that Hong Kong’s economy and business confidence are expected to steadily improve in the coming year,” said Cliff Ip Wang-hoi, CPA Australia’s divisional president. “Recent stimulus measures unveiled by the central government and the Hong Kong government have contributed to this improved sentiment. The start of the rate-cutting cycle has also boosted business confidence.”
The city is also reportedly working on a plan to exempt investment institutions and rich individuals from paying taxes on gains from cryptocurrencies and other alternative assets, as Hong Kong makes efforts to maintain its status as a world-leading financial hub.
