According to a survey recently released by HSBC, Hong Kong is living up to its cosmopolitan reputation, with 87% of its mid-size companies reporting that they do international business from there (compared to a global average of 76%).

The poll, which was conducted worldwide, and involved 3,600 mid-size companies, found that 90% of the SAR-based businesses questioned stated that revenue from the international aspects of their operations had grown in the past year, with more than half revealing that it had grown faster than that earned from domestic business.

Where businesses did not currently have an international aspect to their business, 30% suggested that they planned to address this in the next two years.

It also emerged that while on a global basis, exporting and importing were the key international business areas, service-oriented businesses dominated in Hong Kong.

Commenting on the results of the survey, John Coverdale, HSBC’s Global Co-Head of Commercial Banking, observed that :

“Hong Kong mid-size companies are some of the most international in the world and are on the front-line of the global economy. They are important to Hong Kong because they tend to be big local employers and investors. Our survey found the main reason for companies seeking out business outside Hong Kong was to grow revenue and diversify their business. These findings reaffirm our focus to support international corporates and help them overcome the challenges they face in overseas markets.”

The jurisdiction is likely to further benefit from positive regional developments such as the recent signing of the Economic Cooperation Framework Agreement (ECFA) by Chinese and Taiwanese negotiators.

Commenting in late June, the Hong Kong General Chamber of Commerce, which represents the interests of businesses in the SAR, suggested that:

"The signing of ECFA will not only give a boost to economic development across the straits but also facilitate Hong Kong’s position as an international financial centre in the long run."

It went on to add that:

"As an international financial centre, Hong Kong plays a pivotal role in the trade and investment in region. As a result of closer cross-strait relationship, Hong Kong’s role will be changing from a transit hub into a facilitator of more frequent flow of people, capital and trade among the three places and across the straits."

And concluded:

"Hong Kong’s competitiveness as an international financial centre lies in its sound legal system, international reputation and mature financial infrastructure. With the expansion of the RMB-related business, Hong Kong will continue to play a unique and enhanced role serving the exchanges among the three places and across the straits."

Hong Kong Chief Executive, Donald Tsang also announced last month that in contrast to the experience of many other economies, Hong Kong had seen the fastest expansion for four years in the first quarter of 2010, with GDP growing 8.2% year-on-year.

"It was the fourth consecutive quarterly rise and above economists' expectations. This positive news is being reflected at Invest Hong Kong where the department continues to exceed its previous years' targets for completed investment projects. This year it is again on track to beat its target of 270 projects," Tsang remarked, at a reception hosted to thank foreign investors for their support.