Hong Kong Business Survey Sees Trade Volumes Increasing

by Mary Swire, Tax-News.com, Hong Kong

03 August 2004

The Quarterly Business Tendency Survey conducted by Hong Kong’s Census and Statistics Department has found that businesses in all sectors of the economy, including banking and finance, expect volumes to increase in the third quarter compared to the second quarter of 2004.

According to the survey, significantly more respondents in the banking, finance and insurance sector expect an increase in their volume of business and employment from the second quarter to the third quarter compared to those expecting a decrease over the same period.

In addition, the survey found that those firms polled expect the prices they charge for their services to remain broadly unchanged in Q3.

Similarly, more firms in the real estate, business services and telecommunications sector were anticipating higher volumes in the third quarter compared to those expecting business volumes to fall. These respondents also reported little anticipated change in prices.

Elsewhere in the economy, moderately more manufacturers are forecasting more business in the third quarter, whilst significantly more firms in the wholesale and retail business, import and export trade, restaurant and hotel sector and transport services see business volumes rising.

The survey’s results were based on the views of senior managers from around 490 prominent establishments in Hong Kong.

A Department spokesman warned that the results should be interpreted with care, as the respondents’ perceptions are not easily compared with underlying trends.

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