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Survey: Business Confidence Remains High

1996.01.01

Two-thirds of Hong Kong business leaders in six specific sectors surveyed expect the territory’s economic growth to continue at current levels or increase following the change of sovereignty next year, according to an independent opinion poll carried out for The Better Hong Kong Foundation.

In all, an average of 70.8 per cent of the respondents remained confident in Hong Kong’s business environment when it becomes the Special Administrative Region in 1997.

This is one of the key findings of surveys undertaken by The Foundation since December last year with various specific business sectors ranging from Chambers of Commerce, Trade Commissions/Consulates, Banking, Manufacturing/Industry, Tourism & Retail and Accounting.

In line with this underlying confidence in Hong Kong and its economic prospects, 74 per cent of the representative sample said they would continue with business as usual, while 19 per cent thought they would increase activity or plan to reassess the situation in 1997, and only 7 per cent of respondents expected to diminish their business presence in the territory or to relocate in light of the change of sovereignty.

Two-thirds of the business leaders surveyed felt that the change of sovereignty in Hong Kong would not affect profitability, with the remaining 34 per cent equally split between improving and deteriorating profitability.

With respect to the 10 most critical factors for maintaining business confidence, the free flow of capital and an independent legal system topped the list with 80 per cent and 79 per cent respectively, followed by local and international business confidence (both 64 per cent), free trade status (62 per cent), an independent Hong Kong dollar (60 per cent), eradication of corruption (58 per cent), reputation as financial centre of Asia (57 per cent), laissez-faire government policy towards business (56 per cent) and SAR autonomy in government (54 per cent).

The survey revealed that one-third of the respondents expect access to China’s mainland market and the availability of cheap imported labour to be the areas where they anticipate improvements to occur as a result of the change in sovereignty.

The opinion poll, conducted by Asia Studies – Wirthlin, also showed taxation, the economy, government policy towards business, the police force and legal system as the areas most expected to retain high autonomy beyond 1997, while respondents were less optimistic on the issues relating to the political system, media/broadcasting, human rights, the government of Hong Kong, immigration and Hong Kong’s standing in the international community.

 

Press Conference

Trustee Dr. Henry Cheng (the middle) shared his views with professionals in architectural sector