In the third quarter, the "Standard Chartered Hong Kong SME Leading Business Index" composite business index fell to 40.5. Experts predict that the growth in the second half of the year will be more moderate.

On August 19, the Hong Kong Productivity Council announced the "Standard Chartered Hong Kong SME Leading Business Index for the third quarter of 2025". The survey results show that there is still uncertainty in the global economic environment, with the "business conditions" and "profit performance" dropping to 36.6 and 34.1 respectively, reflecting a slight decline in confidence of local SMEs in the business volume of this quarter. The comprehensive business index fell slightly by 3.3 to a level of 40.5. Standard Chartered Bank's Greater China and North Asia senior economist Liu Jianheng pointed out that the index shows that after a strong start to the first half of the year, the growth of the Hong Kong economy in the second half of the year will be more moderate. The "Standard Chartered SME Index" is at 40.5, the lowest since the second quarter of 2022. In terms of the comprehensive business sector index for this quarter, out of the 11 industries, the "construction industry" (42.3) and "accommodation and catering industry" (42.9) showed increases. In addition, the recruitment intention for the "professional and commercial services industry" increased by 2.9 points, and the profit performance improved by 1.2 points, reflecting the continued growth in demand for high value-added services. The proportion of companies expecting an increase in raw material costs decreased to a five-season low of 47%, and the pressure to raise salaries also eased, dropping by one percentage point to 19% from the previous quarter. Only 17% of SMEs plan to increase prices for goods or services, unchanged from the previous quarter. The "global economy" sub-index has seen declines for three consecutive quarters, with a cumulative decline of 15.6 since the fourth quarter of 2024. The weakness in the global economy is mainly affected by multiple factors. Since the fourth quarter of 2024, the turnaround in US monetary policy and economic stimulus measures have not fully boosted consumption. The high tariff policy implemented by the US this year further suppresses global trade flow, raises operating costs for companies, and exacerbates the operational pressure on SMEs. Liu Jianheng said, "The 'Standard Chartered SME Index' for the third quarter is 40.5, the lowest level since the second quarter of 2022. Despite the challenging business environment, Hong Kong's GDP performed steadily in the second quarter, and business confidence remains cautious and stable, demonstrating a spirit of facing difficulties head-on." The survey shows that over 80% of enterprises planning to go global prefer the mainland or Asia. Furthermore, the survey results show that local SMEs are facing multiple business challenges, including "increased market competition" (50%), "unstable tariff policies" (40%), and "rising import/export costs/employee salaries" (37%). Currently, 75% of SMEs have already conducted production or manufacturing, product research or testing, professional services, and product or service sales overseas, with these businesses mainly focused in the mainland. In terms of going global plans, 16% of surveyed SMEs have plans to go global within the next three years, while another 18% are considering it. Among SMEs that have planned to go global, the majority are inclined to expand to the mainland (59%) or the Asian region (42%). Whether businesses have already gone global or are considering it, they believe that "unfamiliarity with local regulations, planning or policies" and "difficulty in finding local business partners" are the biggest challenges they face during the process of going global. Ms. Fiona Chung, Chief Marketing Officer of the Hong Kong Productivity Council, pointed out, "This quarter's survey reflects that local SMEs are facing challenges such as increased market competition and rising costs, and over 80% of enterprises planning to go global prefer the mainland or Asia, but there is an urgent need for familiarity with local regulations and partners."