Hong Kong Country Report & Business Risk Assessment

All eyes on the Mainland

BB3

SENSITIVE RISK for entreprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

The country risk assessments are your North Star metrics to make the right decision for your business and understand the risks in international trade. We have always the best solution for your needs

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GDP USD341.4bn (World ranking 33, World Bank 2017)
Population 7.4mn (World ranking 102, World Bank 2017)
Form of state Limited Democracy
Head of government Carrie Lam (Chief Executive)
Next elections 2020, legislative
  • Being a gateway to China and close ties help Hong Kong capitalize on competitive advantage in finance and services
  • Good record of strong dynamic growth
  • Strong external liquidity and public debt position
  • Sound banking system and proven monetary policy framework
  • Very strong business environment
  • Long-term competition from Mainland cities
  • Sensitive to political developments in Mainland China
  • As a small, very open and financially integrated economy, Hong Kong is highly sensitive to global economic and financial shocks
  • Exposed to property sector price fluctuations

Trade structure by destination/origin

(% of total)

Exports Rank Imports
China 55%
1
45% China
United States 8%
2
9% Taiwan (PRC)
India 3%
3
6% Japan
Japan 3%
4
6% Korea, Republic of
United Kingdom 2%
5
5% United States

Trade structure by product

(% of total)

Exports Rank Imports
Electrical machinery, apparatus and appliances, n.e.s. 31%
1
32% Electrical machinery, apparatus and appliances, n.e.s.
Telecommunication and sound recording apparatus 18%
2
17% Telecommunication and sound recording apparatus
Gold, non-monetary (excluding gold ores and concentrates) 10%
3
8% Office machines and automatic data processing machines
Office machines and automatic data processing machines 9%
4
6% Gold, non-monetary (excluding gold ores and concentrates)
Miscellaneous manufactured articles, n.e.s. 5%
5
5% Miscellaneous manufactured articles, n.e.s.
The payment behavior of domestic companies is acceptable, taking 30 to 90 days on average but delays are frequent and late payments are not regulated by law.

  • Low

  • Medium

  • Sensitive

  • High

  • Payments

  • Court proceedings

  • Insolvency proceedings

Hong Kong courts are reliable and swift in dealing with business claims; however when it comes to dealing with insolvent debtors, the law provides no formal procedures to achieve a restructuring of the company’s debts.

Contact Euler Hermes

Economic Research Team

research@eulerhermes.com

Mahamoud Islam

Senior Economist for Asia

mahamoud.islam@eulerhermes.com

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