(from
left
to
right)
Mr
Robert
Lui,
Divisional
Councillor
of
CPA
Australia
2024
in
Greater
China;
Ms
Karina
Wong
Divisional
Deputy
President
of
CPA
Australia
2024
in
Greater
China;
Mr
Cliff
Ip,
Divisional
President
of
CPA
Australia
2024
in
Greater
China;
Mr
Cyrus
Cheung,
Divisional
Deputy
President
of
CPA
Australia
2024
in
Greater
China
Surveyed
executives
and
accounting
professionals
show
a
relatively
optimistic
outlook
for
Hong
Kong’s
economy,
with
63
per
cent
anticipating
the
local
economy
will
grow
next
year.
Hong
Kong’s
tax
system
(31
per
cent)
ranks
as
the
largest
positive
contributor
to
the
city’s
economic
and
business
environment
in
2025,
while
changes
in
consumer
patterns
(26
per
cent)
and
tension
in
US-China
relations
(26
per
cent)
are
seen
to
be
the
two
biggest
challenges.
56
per
cent
of
respondents
rated
Hong
Kong’s
international
competitiveness
as
high.
Mr. Cliff Ip, CPA Australia 2024 Divisional President of Greater China, said, “The survey findings reflect that Hong Kong’s economy and business confidence are expected to steadily improve in the coming year. Recent stimulus measures unveiled by the central government and the Hong Kong government have contributed to this improved sentiment. The start of the rate-cutting cycle has also boosted business confidence. These positive factors should keep this momentum going into 2025 and strengthen Hong Kong’s international competitiveness.
“However, external uncertainties still weigh on some sectors such as tourism and retail. Respondents indicate that changing customer behaviour and weak customer demand are some of the key challenges they expect to face in 2025. In response, companies must keep innovating their products and services, and how they deliver them. They also need to frequently engage with customers and potential customers to better understand trends both in Hong Kong and elsewhere.”
The
outlook
for
initial
public
offerings
(IPOs)
in
the
city
is
also
optimistic.
Some
63
per
cent
of
respondents
expect
the
value
of
funds
raised
in
Hong
Kong
through
IPOs
to
increase
in
2025.
“IPO
activity
in
Hong
Kong
has
shown
signs
of
recovery
since
Q3
due
to
some
mega-sized
IPOs.
Policies
and
regulatory
reforms
are
stimulating
capital
activities
and
boosting
investor
confidence,”
Ip
explained.
The improving economic sentiment is flowing through to revenue projections and business expansion plans in 2025. 51 per cent of respondents predict their company’s revenue will grow next year, with an increase in revenue of between 5 to 20 per cent being the most popular prediction.
In response to this improving business environment, respondents are most likely to forecast that their company will increase their investment in advanced technologies (38 per cent), sales and marketing (37 per cent) and expansion outside of Hong Kong (36 per cent). A notably high proportion of respondents to this survey stated that their company has expansions plan in the next three years at home or abroad, with mainland China (40 per cent) again nominated as the most popular destination.
Though cost management remains the top strategic focus for many companies, the percentage choosing it has dropped from 39 per cent in 2024 to 27 per cent in 2025. While slightly more are expected to focus on market expansion activities (27 per cent) and innovation and digitalisation (26 per cent).
Ip stated, “The more positive business environment is being reflected in an expected shift in corporate strategy away from defensive strategies such as cost management and improving business efficiency towards more expansionary strategies such as market expansion and innovation.”
To support growing revenue and expansion plans, companies are keen to add more employees and increase salary to retain talent. 57 of per cent respondents expect that their companies to increase headcount, the highest new hiring intention since 2020. These new hiring intentions are strongest amongst larger companies. Salaries are expected to grow, with 62 per cent expecting to receive a salary increase in 2025.
While the economy looks to be on a positive trajectory, predictions for price changes in the property market in 2025 are uncertain, with similar numbers of respondents expecting prices to increase and decrease, however more respondents expect prices to increase than the previous two years.
Ip explained, “The city’s property market is recovering, with demand gradually growing. This is due to recent interest rate cuts and changes in government policies such as the relaxation of restrictive measures in the housing market. However, with sectors such as SMEs undergoing a relatively slower recovery due to the weak domestic demand, this is leading to stagnation in the rental market.”
The survey data shows nearly all Hong Kong companies have introduced at least some ESG measures into their operations, with only three per cent stating they have not taken any ESG actions. Another 35 per cent expect their company to increase their ESG-related initiatives and activities next year. Respondents were most likely to nominate compliance and increasing compliance costs as the biggest impact ESG is having on their business.
CPA Australia collected 568 responses from Hong Kong-based executives, accounting and finance professionals working in various industries in October and November for this Hong Kong Economic and Business Sentiment Survey 2025.
https://www.cpaaustralia.com.au/
https://www.linkedin.com/school/cpaaustralia/
Hashtag: #CPAAustraliaHongKong #2025HongKongBusinessOutlook #Forecast #Advocacy #ThoughtLeadership #Accounting
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