HK CEOs less optimistic about economic growth than their global counterparts

Executives' confidence in their revenue growth also declined.

Only 62% of executives in Mainland, China and 68% in Hong Kong expressed optimism on near-term economic prospects, making them less confident than their global counterparts (77%), a study by PwC found.

There was also low optimism toward their revenue growth prospects amongst both HK and Mainland CEOs, the study said. Confidence in revenue growth amongst HK CEOs declined by 2%, and only 48% of Mainland CEOs expressed high confidence.

Mainland Chinese CEOs cited health risks (42%) as the top threat to their respective company's growth in the next 12 months, followed by macroeconomic volatility (41%), geopolitical uncertainties (32%), and climate change (31%).

Since the study was conducted in October and November 2021, it has yet to reflect the spread of Omicron in China, as well as the geopolitical tensions between Russia and Ukraine.

Meanwhile, Mainland China was named the top market for growth amongst HK CEOs (78%) and ranked second amongst global CEOs (27%).

Mainland Chinese CEOs, for their part, are considering the US (29%), Australia (24%), Germany, and Japan (23%) as their most important overseas markets for revenue growth over the next 12 months.

In terms of priority markets for outbound investment, Mainland Chinese CEOs are targeting Asia Pacific (66%), Belt and Road countries/regions (50%), and the EU (48%) in the next 12 months, while Hong Kong CEOs plan to invest in the Asia Pacific (69%) and ASEAN (46%).

"In the past year, China’s economy has maintained a steady recovery trend even in the complex and severe domestic and foreign context, facing many risks and challenges. Looking into 2022, businesses can expect to face additional challenges posed by macroeconomic volatility, geopolitical tensions, cyber risks, and the increasingly urgent need to transition to a net-zero economy," Thomas Leung, Managing Partner - Markets, PwC China said.

"Looking ahead, CEOs in Mainland China and Hong Kong will need to rethink their strategic roadmap for sustainable growth and identify long-term growth opportunities by going beyond short-term financial metrics to navigate these turbulent times and ensure sustained outcomes," he added.