Survey: Over 60% of SMEs Expect Significant Investments within the GBA in 2023 (10 January 2023)

10 January 2023

Survey: Over 60% of SMEs Expect Significant Investments

within the GBA in 2023

Hang Seng Bank is Strongly Positioned to Assist SMEs with Simple, Fast and Seamless Cross-boundary Financial Products and Services

Small and medium enterprises ('SMEs') in the Greater Bay Area ('GBA') are highly optimistic about the region's outlook and economic growth potential, according to a research report recently published by Bain & Company ('Bain') in collaboration with Hang Seng Bank ('Hang Seng'). Around 80% of mainland SMEs and 60% of Hong Kong SMEs expect to invest over 15% of their revenues within the GBA in 2023, compared to an annual average of 6% listed mainland companies' revenue invested in capital expenditure between 2017 and 2021.

Titled "Greater Bay Area SME Report: A Story of Resilience and Opportunity", the research report reveals that 70% of the SME respondents are optimistic about the interconnectedness programmes launched by both the mainland and Hong Kong governments, while 80% hope for faster implementation. The SME respondents expressed strong demand for cross-boundary financial products and services especially on lending, professional wealth management services including flexible insurance policies and comprehensive cash and liquidity management solutions.

Respondents' ownership of cross-boundary wealth products decreased compared to 2020, with a shift in SMEs' preferences since COVID-19 to prioritise financial stability and cash flow over other factors. Cash management and payment services with quick and convenient remittance are considered to be one of the most important financial products for cross-boundary expansion, with the ability to secure funding indicated as the key pain point for most SMEs.

Hang Seng and its wholly-owned subsidiary, Hang Seng China, are well-positioned to assist SMEs with simple, fast and seamless cross-boundary financial products and services. Leveraging its wealth management expertise, strong digital capabilities and diverse product offering, Hang Seng understands the evolving needs of SMEs and offers tailored solutions.

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To help SMEs navigate traditional credit assessment requirements, Hang Seng is collaborating with trusted partners to drive innovation and create business synergies. This is evident through the Bank's partnership with QFPay HK to provide faster financing for SME customers via the Hong Kong Monetary Authority's Commercial Data Interchange platform.

Hang Seng also echoes the Guangdong, Hong Kong and Macau governments' policies that promote interconnectivity within the region. Hang Seng Credit Link was launched to enable swift and flexible cross-boundary reallocation of credit limit within a customer group, empowering customers to act fast to tap cross-boundary business opportunities. The Bank also launched InnoTech Fund to provide funding to help GBA corporate customers integrate technology into their businesses.

Donald Lam, Head of Commercial Banking at Hang Seng Bank said, "The GBA is emerging as a major international hub for technology, innovation and e-commerce activities. Bain's research findings on the banking and financial needs of SMEs in the GBA closely mirror Hang Seng's strategic priorities. With dedicated effort and an emphasis on innovation to deliver a seamless cross-boundary banking experience for customers, Hang Seng has been providing solutions that support commercial customers and SMEs in grasping opportunities and sharpening their business edge in the GBA. Looking ahead, the Bank will continue to innovate and develop more customised solutions to support the long-term success of its diverse base of commercial customers."

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To view a copy of the report: https://www.bain.com/insights/greater-bay-area-sme-report-a-story-of-resilience-and-opportunity/

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About Hang Seng Bank

Founded in 1933, Hang Seng Bank has continually innovated to provide best-in-class,customer-centric banking, investment and wealth management services for individuals and businesses. It is widely recognised as the leading domestic bank in Hong Kong, currently serving more than 3.5 million customers.

Combining its award-winning mobile app and strong digital capabilities with a vast network of over 260 service outlets in Hong Kong, Hang Seng offers a seamless omni- channel experience for customers to take care of their banking and financial needs anytime, anywhere.

Its wholly owned subsidiary, Hang Seng Bank (China) Limited, operates a strategic network of outlets in almost 20 major cities in Mainland China to serve a growing base of Mainland customers locally and those with cross-boundary banking needs. The Bank also operates branches in Macau and Singapore, and a representative office in Taipei.

As a homegrown financial institution, Hang Seng is closely tied to the Hong Kong community. It supports the community with a dedicated programme of social and environmental initiatives focused on future skills for the younger generation, sustainable finance and financial literacy, addressing climate change and caring for the community.

Hang Seng is a principal member of the HSBC Group, one of the world's largest banking and financial services organisations. More information on Hang Seng Bank is available at www.hangseng.com.