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Analysis of Key Sectors of Hong Kong: Business Tourism, Financial Services, Logistics, Trade and Retail (2020 - 2025)

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Hong Kong, with a GDP worth US$274 billion, once an exploited British colony, is today one of the most prosperous countries in the world. Its market is considered one of the freest in the world. Today, it is the 3rd largest recipient of FDI in the world, has one of the best financial market ecosystem in the world, and benefits from the trade going in and out of China through its ports.

It is the 3rd best place in the world to do business with interest rates as low as 0.50%. Indeed, its financial markets are one of the world’s best. Low taxes (and ways to legally decrease the amount payable), ease of making offshore accounts, and a strong currency has made this extension of China, its wealthiest. Jobless rate has stayed constant at 3.3% for a long time. Hong Kong attracts many skilled and unskilled labour. The skilled labour-force is on the rise given competitive secondary and tertiary education. Flexible wages for labour make starting a business even easier.

According to the World Economic Forum, Hong Kong’s ground infrastructure and ports are the best in the world. On the travel and tourism competitiveness of the world, Hong Kong ranks 17th. About 93% of Hong Kong’s economy is upheld by services, with retail & wholesale, public administration, financial services, and real estate holding the largest positions in services. Construction accounts for 3.5% of the GDP.

Hong Kong is a mature economy heavily reliant on trade and services, with about 7 million people living on a landmass spanning no more than 1,104 sq. kilometers. Currently at 2.20%, the GDP YoY growth has not been able to move past 5%. Recent deceleration in exports, the economy slowdown in China, and hike in US interest, all work to weaken the growth in Hong Kong’s economy. The recent Umbrella Movement, where a number of next-gen Chinese citizens – students with previously no political biases resulted in a forced closure of protests, and no policy movement to increase the democratization of election of Hong Kong’s Chief Executive. Many policymakers are insistent that it is imperative for Hong Kong to break away from the shadow of China to steady and increase its economic growth.

However, despite these measures, some sectors in Hong Kong exhibit reliable growth for the foreseen future.

Drivers

FDI powers the economy, with a strong labour force ensuring an efficient dispensing of all sectors. Hong Kong with its port handles a large amount of the export and import for China, and has excellent logistics to boast of.

Constraints

The Chinese slowdown leaves the largely open Hong Kong market vulnerable to downward shifts. Furthermore, the high reliance on trade and its open markets have led to fluctuations in GDP. Currently, Hong Kong faces record high trade deficit in response to increase imports and insufficient demand from its primary market: Asia. The open stock market responds to a number of fluctuations, and this has an effect on the real estate of the country.

What this Report Offers

This report will contain micro & macro factors that affect Hong Kong’s market on both Global and Regional scale. It will provide insights pertaining to specified topics and key drivers & restraints for the market particular to each mentioned sector and sub-sector. The report will identify factors instrumental in changing the market scenarios, rising prospective opportunities and identification of key companies which can influence the market on a global and regional scale.

It also contains competition analysis on global & regional scale providing region specific assessments. Competitive landscape will contain profiles of multiple companies along with their strategic initiatives and market shares. Finally, it offers a comprehensive list of key market players along with the analysis of their current strategic interests and key financial information.

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