SMEs Show Slight Improvement in Business Sentiment, Reports Census and Statistics Department

Results of monthly survey on business situation of small and medium-sized enterprises for October 2024

The Census and Statistics Department (C&SD) released today (November 11) the results of the Monthly Survey on Business Situation of Small and Medium-sized Enterprises (SMEs) for October 2024.

The current diffusion index (DI) on business receipts amongst SMEs increased from 41.6 in September 2024 in the contractionary zone to 42.3 in October 2024, whereas the one-month’s ahead (i.e. November 2024) outlook DI on business receipts was 47.3. Analysed by sector, the current DIs on business receipts, despite below the 50-mark, rose in October 2024 as compared with previous month for many surveyed sectors, particularly for the real estate (from 44.9 to 46.3) and retail trade (from 38.4 to 39.8).

The current DI on new orders for the import and export trades increased from 44.5 in September 2024 to 44.7 in October 2024, whereas the outlook DI on new orders in one month's time (i.e. November 2024) was 47.6.

Commentary

A Government spokesman said that overall business sentiment among SMEs and their expectations on the business situation in one month's time both improved slightly in October. The overall employment situation also improved further.

The spokesman added that the gradually easing financial conditions, the Central Government's latest policy measures for supporting the Mainland economy as well as its various measures benefitting Hong Kong should bode well for business sentiment, though increased global economic uncertainties and trade conflicts would pose negative impacts. The Government will monitor the situation closely.

Further information

The Monthly Survey on Business Situation of Small and Medium-sized Enterprises aims to provide a quick reference, with minimum time lag, for assessing the short-term business situation faced by SMEs. SMEs covered in this survey refer to establishments with fewer than 50 persons engaged. Respondents were asked to exclude seasonal fluctuations in reporting their views. Based on the views collected from the survey, a set of diffusion indices (including current and outlook diffusion indices) is compiled. A reading above 50 indicates that the business condition is generally favourable, whereas that below 50 indicates otherwise. As for statistics on the business prospects of prominent establishments in Hong Kong, users may refer to the publication entitled "Report on Quarterly Business Tendency Survey" released by the C&SD.

The results of the survey should be interpreted with care. The survey solicits feedback from a panel sample of about 600 SMEs each month and the survey findings are thus subject to sample size constraint. Views collected from the survey refer only to those of respondents on their own establishments rather than those on the respective sectors they are engaged in. Besides, in this type of opinion survey on expected business situation, the views collected in the survey are affected by the events in the community occurring around the time of enumeration, and it is difficult to establish precisely the extent to which respondents' perception of the business situation accords with the underlying trends. For this survey, main bulk of the data were collected around the last week of the reference month.

More detailed statistics are given in the "Report on Monthly Survey on the Business Situation of Small and Medium-sized Enterprises". Users can browse and download the publication at the website of the C&SD (www.censtatd.gov.hk/en/EIndexbySubject.html?pcode=B1080015&scode=300).

Users who have enquiries about the survey results may contact Industrial Production Statistics Section of the C&SD (Tel: 3903 7246; email: sme-survey@censtatd.gov.hk).

HKSARG responds to reauthorization of the so-called Sanctions Provisions under HKHRDA incorporated in National Defense Authorization Act for Fiscal Year 2025

​The Hong Kong Special Administrative Region (HKSAR) Government today (December 26) strongly disapproves of and firmly rejects US' reauthorization of the so-called Sanctions Provisions under the Hong Kong Human Rights and Democracy Act (HKHRDA) incorporated in National Defense Authorization Act for Fiscal Year 2025.

A spokesman for the Government said, "In accordance with international law and international practice based on the Charter of the United Nations, it is each and every sovereign state's inherent right to enact laws safeguarding national security, and it is also an international practice. With at least 21 pieces of laws safeguarding national security, the US has exposed its double standards by pointing the finger at the HKSAR's legal system and enforcement mechanism to safeguard national security."

"The Hong Kong National Security Law (NSL) and the Safeguarding National Security Ordinance (SNSO) also clearly stipulate that human rights shall be respected and protected in safeguarding national security in the HKSAR. The offences endangering national security stipulated by the related Ordinance target acts endangering national security with precision, and define the elements and penalties of the offences with clarity, aiming at addressing, combating, deterring and preventing acts and activities of endangering national security. It targets only an extremely small minority of people without affecting the basic rights and freedoms lawfully enjoyed by Hong Kong residents."

He said, "The US openly clamour for so-called 'sanctions' with an aim to intimidate HKSAR officials who resolutely safeguard national security. The HKSAR Government strongly condemns its political grandstanding rife with ill intentions, which have been seen through by all. The HKSAR despises the so-called 'sanctions' and will not be intimidated by such a despicable behaviour. The HKSAR will resolutely continue to discharge the duty of safeguarding national security."

The HKSAR Government has been enforcing the sanctions imposed by the United Nations Security Council (UNSC) fully and vigorously to fulfil our international obligations. We have long been maintaining an effective mechanism for implementing the resolutions of the UNSC. That includes denying entry of vessels designated by the UNSC as well as suspicious vessels, keeping a close watch on and inspecting suspicious Hong Kong-based companies to prevent them from participating in activities evading UNSC sanctions. At the same time, the HKSAR Government has been implementing a comprehensive and robust control regime over the import and export of strategic commodities and maintaining active participation in the Chemical Weapons Convention and the Arms Trade Treaty through the Central People's Government. The effectiveness of our work has been well respected and recognised by our trading partners and internationally.

The US has substantial economic interest in Hong Kong. Over the past decade, it registered a trade surplus of about US$270 billion with Hong Kong. Currently, some 1 390 US companies operate in Hong Kong. If the US insists on its acts, it will ultimately undermine the mutually beneficial relations between Hong Kong and the US, harming the interests of the US and its companies.

The spokesman reiterated that foreign governments and legislatures should not interfere in any form in the internal affairs of the HKSAR.