Entrepreneurship

Business confidence in the Guangdong-Hong Kong-Macao Greater Bay Area rallied to a record high in the first quarter of this year after the Mainland China-Hong Kong borders fully reopened.

The sharp rise in business activity after the Hong Kong-Mainland China borders reopened has brightened exporter sentiment in Hong Kong and moved the mainland economy into top spot for trade prospects.

Logistics was one of the hardest-hit industries during the COVID-19 pandemic, with the China Shanghai Containerized Freight Index increasing more than five-fold between June 2020 and January 2022 – then plunging back to its 2019 level by last month.

Fashion-conscious office workers in Central, Hong Kong, have long turned to IL Sarto Tailor – a local specialty tailor focussing on Italian-style, custom-made suits – for such sartorial needs. Yet, the fallout from the pandemic meant many face-to-face meetings were shelved and working from home became routine. Office workers no longer needed to dress to the nines in order to meet customers, which abruptly halved IL Sarto’s business. The brand adapted immediately: in addition to focusing on wedding suits, and launching casual and women's clothing lines, the tailor also plans to open a store in the United Kingdom to capitalise on demand there for tailor-made clothing, particularly in London.

The Hong Kong Trade Development Council (HKTDC) projects that Hong Kong’s exports will grow 5% in 2023 – a recovery from the 6% decline this year. HKTDC Director of Research Irina Fan said: “Hong Kong’s exports will gradually regain growth momentum amid the receding pandemic, easing of COVID-19 restrictions and resumption of cross-border land transportation.”