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Hong Kong records rise in business confidence

Anuradha Shukla | Nov. 26, 2012
Regus Business Confidence Index indicates increase in revenue for Hong Kong companies.

The latest Regus Business Confidence Index shows that the proportion of Hong Kong companies reporting revenue increases rose from 47 percent in April 2012 to 53 percent.

The profits also grew from 40 percent to 44 percent during this period indicating a rise in business confidence in the city.

However, the situation is not so bright in China, as its confidence level fell from 130 to 110 since April 2012.

Confidence level was worse for small and medium-sized businesses in China, and this low level was attributed to the lack of access to affordable credit and cash-flow management.

"It's clear that there's been a stagnation in business confidence, and indeed significant falls in some rapidly developing economies, since our last BCI report in April," said Regus' Hans Leijten, Regus' vice-president, East Asia. "This suggests that slowing trade with Europe and Western economies, combined with a host of national factors, is taking its toll."

No significant increase in past six months

The Index shows that global confidence levels have not changed very much in the past six months or so and in fact they have decreased two percentage points to 111 since April 2012.

Businesses across the world should take this as a warning and work towards strengthening their positions in their respective markets.

Hong Kong businesses are doing well these days and 54 percent of those surveyed said they were satisfied with their government's support strategies for business.

Regus Business Confidence Index is a global barometer of business sentiment based on the views of over 24,000 senior business people from 92 countries.

Data from the latest report shows that globally, cost of marketing and promotion (39 percent), cash-flow (38 percent), sales (37 percent) and lack of suitable office space for client meetings (28 percent) are the major challenges to small businesses and startups.

Tax exemptions (57 percent), low interest loans (49 percent) and better information services (44 percent) are the key measures, which respondents think should be taken by the government to help solve these problems.

 

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