HK SME business sentiment improves, says gov't study

Hong Kong's small and medium-sized enterprises (SMEs) are enjoying an improved business sentiment as the global economy seems to be on the path to recovery, according to a survey from the Hong Kong government's monthly survey on the business situation of SMEs for August 2021.

The current diffusion index (DI), a statistical measure often used to detect economic turning points, on business income among SMEs increased from 46.6 in July 2021 to 49.0 in August 2021, whereas the outlook of September is expected to hit 49.5. Analysed by sector, the current DIs on business income for many surveyed sectors rose by varying degrees in August 2021 as compared with the previous month, particularly for the retail trade (from 44.6 to 52.4) and wholesale trade (from 43.4 to 50.0).

A government spokesman said that business sentiment among SMEs improved for the third consecutive month in August thanks to the global economic recovery and the improved local COVID-19 situation. Moreover, the current eVoucher Scheme contributed to the increase in the sub-index for the retail trade as it entered the expansionary zone. The government added that the disbursement of the second batch of eVouchers will support consumption-related sectors in the remaining months of 2021

The monthly survey on the business situation of small and medium-sized enterprises aims to provide a quick reference for assessing the short-term business situation faced by SMEs with minimum time lag. The survey solicits feedback from a panel sample of about 600 SMEs each month.

Meanwhile, Hong Kong's economy is showing signs of improvement and it is expected to match Singapore's for the first time since 2008, according to a Bloomberg study. A Bloomberg report said economists had raised their growth forecasts for Hong Kong by 0.7 percentage points to 6.7% this year, while Singapore's economic growth outlook was upgraded by 20 basis points to 6.5%.

A government economist expected a number of factors that could contribute to the city's economic recovery, including the well-contained COVID-19 situation, the improving labour market conditions, coupled with the boosting effect of the eVoucher Scheme.

In July, Hong Kong's total number of registered local companies has reached about 1.38 million, while there were more than 56,000 newly registered local companies during the first half of 2021. The Companies Registry has released figures over company registration for the first half of 2021.

The total number of local companies stood at 1,384,504 as of 30 June, while there were 56,253 newly registered local companies.

Meanwhile, regarding non-Hong Kong companies that have newly established a place of business in Hong Kong, 662 companies were registered in the first half of 2021. The total number of registered non-Hong Kong companies reached 14,044 by the end of June 2021.

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