HK businesses see robust economy to survive another crisis
The Hong Kong business community is confident that the city’s economy is robust enough to survive another global financial crisis if the Eurozone collapses, according to the latest CPA Australia’s Hong Kong Business Outlook Survey. Of the 326 respondents, a significant 68.1 percent noted the territory’s resilience.
More than half or 55.2 percent see Hong Kong’s economic outlook for 2012 as negative. At the same time, 57.4 percent said that it would be business as usual over the next three years, with no plans to expand or reduce their business in Hong Kong.
Improved credit risk management (26 percent of respondents), cash and liquidity (25.4 percent), and foreign exchange exposure (15.2 percent) were identified as the most important risk mitigation initiatives to protect businesses from being impacted by the Europe debt crisis.
Two-thirds of the 326 respondents plan to increase their renminbi holdings in cash next year. “Companies are taking a ‘cash is king’ approach as they prepare to protect themselves over what will be a very challenging economic climate in 2012,” said Peter Lee, CPA Australia Greater China’s deputy president.