PwC survey: 98% of Hong Kong CEOs surveyed are optimistic about revenue growth in the next 3 years.

On February 6th, PwC released a survey of Hong Kong CEOs, showing that the percentage of Hong Kong CEOs confident in global economic growth has increased from 62% to 70% compared to last year, while the percentage of those confident in regional economy has increased from 40% to 61%. Additionally, 98% of Hong Kong CEOs are optimistic about revenue growth in the next 3 years, although their short-term outlook remains cautious. The survey was conducted from September 30th to November 10th last year, visiting over 4400 CEOs in 95 countries and regions globally. The survey also showed that Hong Kong business leaders are significantly more confident, but also perceive increasing risks. In an open and digitally advanced economy, Hong Kong CEOs are optimistic about global economic growth, but are also highly sensitive to short-term pressures such as cyber threats, stakeholder trust requirements, and geopolitical instability. The application of artificial intelligence is driving revenue growth and cost optimization for businesses in Hong Kong. 58% of Hong Kong CEOs indicated that AI has contributed to revenue growth (compared to the global average of 29%), and the proportion of companies in Hong Kong achieving revenue growth and cost reduction (17%) is also higher than the global average (12%). However, the widespread use of AI inevitably increases the "attack surface," making the need for cybersecurity more urgent. Li Shangyi, Vice Chairman and Managing Partner of PwC China, stated, "Our survey shows that Hong Kong's business community is confident about the long-term prospects. Hong Kong businesses have a higher risk tolerance for innovation in the application of artificial intelligence (AI) compared to their global counterparts. However, cybersecurity and data governance have become key concerns for Hong Kong CEOs over other regions globally. We believe this may slow down their implementation of broader strategic initiatives." Furthermore, 81% of Hong Kong CEOs indicated that they have no plans for large-scale acquisitions, a significant increase from 31% last year, and much higher than the global average of 46%. This strategic position of Hong Kong CEOs is different from their overseas counterparts, who have a stronger intent for investment. 11% of global CEOs listed mainland China as one of their top three overseas investment destinations, higher than last year's 9%. As China's position as an acquisition destination grows, Hong Kong will benefit from its unique gateway advantage. Fang Yunxuan, Managing Partner of Sustainable Development Certification at PwC, stated, "Hong Kong's advantage in innovation is built on a solid foundation, especially in the field of artificial intelligence. Our survey results show that Hong Kong CEOs excel in certain key driving factors compared to their global counterparts. These factors include a culture supporting innovation (76% in Hong Kong; 69% globally), ease of technological integration (87% in Hong Kong; 67% globally), and the ability to attract appropriate talent (74% in Hong Kong; 42% globally)." The survey results point out that network resilience has become a key "pass" for business operations, with Hong Kong CEOs even considering network risks more threatening than geopolitical instability. 56% of Hong Kong CEOs view network risks as the primary threat, almost double the global average of 31%. Additionally, strong data governance is crucial: 68% of Hong Kong businesses face strict scrutiny from stakeholders regarding data usage, privacy, and transparency, significantly higher than the global average of 39%. Compared to their global counterparts, Hong Kong businesses demonstrate a higher risk tolerance in innovation (56% in Hong Kong; 26% globally). They also benefit from well-developed infrastructure and more convenient innovation centers and incubator resources (33% in Hong Kong; 23% globally). Facilities such as the Hong Kong Science Park, and the collaborative capabilities with partners in the Greater Bay Area, mean that Hong Kong businesses have a favorable environment for conducting innovation experiments. For mainland Chinese CEOs, while the US remains their top investment destination, their choices have become more diversified, showing increasing interest in markets such as Malaysia, Vietnam, and the UAE.