'More mainland firms eye Belt and Road expansion'

A large number of Chinese firms are looking to expand into the Belt and Road region, according to a recent survey conducted by the Trade Development Council (TDC). The survey of 2,015 companies across China found that 94 percent of respondents planned to tap into Belt and Road markets, up from 73 percent three years ago. The TDC noted that 91 percent of respondents prioritized further expansion in Southeast Asia, particularly in Singapore, Vietnam, Thailand, and Malaysia.

Hong Kong emerged as the top choice for overseas expansion for 83 percent of firms, followed by 78 percent who favored mainland platforms, and 31 percent opting for Singapore. Wing Chu, deputy director of research at the TDC, noted that many companies are adopting comprehensive strategies to diversify their markets, despite concerns about trade uncertainties.

Wing Chu explained that the effects of political issues stemming from the US or similar situations on their business were relatively mild due to their different exposure to the related markets. As the political environment between China and the US improves, the business or such uncertainty effects on enterprises may become of lesser significance in the future.

Bruce Pang, director of research at TDC, highlighted Hong Kong's role as a "super connector" and "super value-adder" that can perfectly match the growing demands of these companies, given the city's diverse services in areas such as financing, risk management, and ESG-related support. Pang added that the city's upcoming 11th Belt and Road Summit, themed "Advancing High-Quality Development, Embarking on a New Journey," will take place on September 9-10.