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GBA Business Confidence Index increment on record high

HONG KONG, Apr 17, 2023 - (ACN Newswire) - Standard Chartered and the Hong Kong Trade Development Council (HKTDC) today released the GBA Business Confidence Index (GBAI) for the first quarter of 2023. The current performance for "business confidence" jumped 11.8 points to 51.3, which was also the first above-50 print since the fourth quarter of 2021. The expectations index leapt to 61.5, the 16.4 points jump was the biggest on record since GABI was launched in the second quarter of 2020. The better-than-expected GBAI reflected that companies in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) had regained confidence as normal travel between Hong Kong and Mainland China fully resumed.

Mr Kelvin Lau, Senior Economist, Greater China, Standard Chartered, and Ms Irina Fan, Director of Research, HKTDC, announced the latest "GBA Business Confidence Index" (GBAI) at a press conference today (17 April).

Sub-indices surge across board

Both the current performance and expectations sub-indices for business activity of all industries rose. Financial Services (59.8) and Innovation and Technology (54.3) topped current performance index; while Professional Services (65.2, up 19.1 points), Manufacturing and Trading (61.3, up 17 points) and Financial Services (67.4, up 16.9 points) showed the strongest improvements in expectations index.

Dongguan, Guangzhou and Shenzhen lead bulls

The current performance and expectations sub-indices rebounded for business activity in all GBA cities; Foshan (55.1), Dongguan (53.5) and Hong Kong (51.6) performed better for the time being, while the strongest growth in expectation index was registered in Dongguan (69.6, up 32.5 points), Guangzhou (67.7, up 24.6 points) and Shenzhen (60.8, up 13.7 points).

Sustained recovery expected

"As Mainland swiftly acquired herd immunity after the reopening early this year, economic activities have resumed speedily. This was reflected in the 'business confidence' level of companies operating in GBA rebounding significantly in the first quarter this year," said Mr Kelvin Lau, Senior Economist, Greater China, Standard Chartered.

"With the support of government policies and boundary reopening, we see little reason to doubt the sustainability of the post-COVID recovery for now. As many GBA companies are still operating below pre-COVID levels, there appears plenty of room still for GBA businesses to play catch-up and return to trend," he added.

Hong Kong sub-indices hit peak

Ms Irina Fan, Director of Research at the HKTDC, said: "The increase in current performance index was prompted by the sharp rise in new orders. It is also worth noting that the profit index (52.5) returns to expansionary territory, showing business improvement for those interviewed."

"In addition, the two sub-indices for Hong Kong hit the highest level since GBAI was launched in the second quarter of 2020, reflecting that local companies are turning optimistic for the city's outlook."

Industrial production, services and fixed-asset investment growth all reaccelerated in the first two months of this year, she added. "The recent string of encouraging macro data explained the positive sentiments, confirming that China's economy has turned the corner post-COVID."

Back to normal by 2024

The GBAI is the first forward-looking quarterly survey in the market that looks at the business sentiment and synergistic effects in cities and industries across the GBA. It is compiled based on a survey of more than 1,000 companies in the GBA covering the manufacturing and trading, retail and wholesale, financial services, professional services and innovation and technology sectors. The index enables investors and businesses to better understand the current business climate, gauge future performance prospects and formulate their market strategies for the GBA.

Close to two-thirds (65%) of the interviewees said relaxation of mainland pandemic measures would positively impact their business for the rest of this year. More than half (53%) of the respondents said they had raised the business targets since the resumption of normal travel earlier this year. About 60% of them expected business - in terms of workforce, capacity utilisation, orders and sales - back to or exceeding the pre-COVID level in the fourth quarter.

Improved consumption on the mainland is expected but respondents remain concerned about rising raw-material costs, geopolitical tensions and intensifying competition within the industry. They hope expanding domestic demand, new GBA-specific policies, more attractions for foreign investments and more supports to the private sector will further improve the business operating environment.

Related materials
- Standard Chartered GBA Business Confidence Index Report:
- HKTDC Research:
- Photos download:

About Standard Chartered

We are a leading international banking group, with a presence in 59 of the world's most dynamic markets and serving clients in a further 64. Our purpose is to drive commerce and prosperity through our unique diversity, and our heritage and values are expressed in our brand promise, here for good.

Standard Chartered PLC is listed on the London and Hong Kong Stock Exchanges.

The history of Standard Chartered in Hong Kong dates back to 1859. It is currently one of the Hong Kong SAR's three note-issuing banks. Standard Chartered incorporated its Hong Kong business on 1 July 2004, and now operates as a licensed bank in Hong Kong under the name of Standard Chartered Bank (Hong Kong) Limited, a wholly owned subsidiary of Standard Chartered PLC. For more stories and expert opinions please visit Insights at Follow Standard Chartered on Twitter, LinkedIn and Facebook.


The Hong Kong Trade Development Council (HKTDC) is a statutory body established in 1966 to promote, assist and develop Hong Kong's trade. With 50 offices globally, including 13 in Mainland China, the HKTDC promotes Hong Kong as a two-way global investment and business hub. The HKTDC organises international exhibitions, conferences and business missions to create business opportunities for companies, particularly small and medium-sized enterprises (SMEs), in the mainland and international markets. The HKTDC also provides up-to-date market insights and product information via trade publications, research reports and digital news channels. For more information, please visit: Follow us on Twitter @hktdc and LinkedIn.

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