Against the backdrop of dual-circulation national strategy, the GBA Think Tank under the auspices of the Federation of Hong Kong Industries and Standard Chartered Bank (HK) Limited jointly conducted the “Research Report on Domestic Sales of Hong Kong Manufacturers in the Greater Bay Area” (the “Report”) to understanding the latest conditions of Hong Kong manufacturing enterprises with factory operations in the Greater Bay Area (GBA). Through questionnaire surveys, in-depth interviews and focus group discussions, the Report made policy recommendations on how to enhance favourable conditions for Hong Kong manufacturers to expand domestic sales business. The questionnaire survey received over 100 responses and the research team interviewed key industry players among the respondents to gauge more in-depth views.

 

The Report pointed out that more than 80% Hong Kong manufacturers in the GBA surveyed are already operating domestic sales business. 83.1% among them would expand domestic sales business in the next two years, regardless of current business performance. The Report also suggested that Hong Kong manufacturers excel in quality and R&D investment, but the further expansion of businesses in the Mainland is laden with multiple challenges. Based on industry views, four major policy recommendations are made: (1) Address credit risks in domestic sales; (2) Strengthen cross-border financial services; (3) Empower green transformation of industries; and (4) Raise quality standards in the GBA. Such specific policy initiatives would support manufacturers in harnessing the business opportunities in the Mainland and foster the prosperous development of internal circulation.

 

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