What expanding Hong Kong companies seek from advisory firms

Eight in 10 companies in the city plan to expand overseas in the next three years. 

Mainland China, Taiwan, and parts of Southeast Asia may see increased demand for advisory services and support from Hong Kong companies, as 80% plan to expand into these destinations over the next three years. 

Adaline Zheng, CEO of UOB Hong Kong, stated that nearly half (40%) of Hong Kong companies aiming to expand overseas encounter regulatory issues, compliance challenges, and tax complexities. 

Consequently, these companies expect more support in areas like advisory services on regulations, licensing requirements, and business customs to maximise market entry success. 
Zheng added that companies also seek risk-related advisory services for political, regulatory, and economic risks in unfamiliar markets. 

To develop more appropriate marketing strategies, some also seek advice on cultural differences and consumer preferences. 

Regarding financial matters, Hong Kong companies focus on advice for account balance management, cash management, trade flow management—particularly cross-border—and FX rates. 

Hong Kong companies also look to their professional service providers for help with complex tax regimes, incentives, and subsidies, alongside support in connecting with local industry networks and trade associations to broaden their market reach. 

Additionally, they want their partners to support them in talent development and training. 

"They will expect the professional advisors to help them to recruit and train the employees to ensure they have relevant language skills, cultural competencies and international business expertise, and provide the required support to their employees in various areas like relocations as well as managing cross-culture teams," Zheng shared. 

Zheng highlighted that it's important for businesses expanding overseas to "find a trusted business partner with local expertise, industry knowledge and strong business network and connections experience in collaboration with local stakeholders such as government sectors and trade associations." 

Beyond relying on professional advisory services, 80% of Hong Kong companies plan to utilise digitalised cross-border trade platforms to pursue growth opportunities in overseas markets.

Talking about preferred destinations for expansion, Zheng said that whilst there's been slowing growth in parts of the Chinese economy, Hong Kong companies still have a positive outlook on the Mainland.

"There's a wide range of optimism that a brighter economic future and outlook would boost business sentiment and will also reduce tail risk of the Chinese property sectors," Zheng said. 

"Hong Kong companies view China's economic development to grow in the long run," she added.