The economic output of the Greater Bay Area (GBA) has surged from RMB 10 trillion to RMB 13.6 trillion in just five years – impressive growth that puts the region on par with the economies of Italy and Canada. Among the world’s major bay areas, the GBA stands out for its largest population and the second-highest GDP.
The completion of three major transport infrastructure projects – the Hong Kong-Zhuhai-Macao Bridge, the Guangzhou-Shenzhen-Hong Kong Express Rail Link and the Shenzhen-Zhongshan Bridge – has drastically reduced travel times between Hong Kong and other GBA cities, significantly enhancing regional connectivity.
Given the region’s remarkable development, there is a growing interest from enterprises eager to explore its market potential. As a vital link between the Mainland and the global economy, Hong Kong offers a wide range of professional services instrumental in the GBA’s growth.
This year marks the fifth anniversary of the “Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area.” In recognition of this milestone, the Chamber organized the “Greater Bay Area Seminar” in September to help members understand and capitalize on the vast opportunities within the region. The forum attracted over 100 participants and featured distinguished experts from various industries who shared valuable insights about GBA market opportunities.
In her opening address, Chamber Chairman Agnes Chan highlighted President Xi’s strategic vision for the GBA, unveiled in 2023, which positions the region as a crucial hub for new development patterns, a demonstration zone for high-quality development and a leader in Chinese modernization.
According to the World Intellectual Property Organization’s Global Innovation Index 2024, the Shenzhen-Hong Kong-Guangzhou (SZ-HK-GZ) science and technology cluster ranked second among the top 100 for the fifth consecutive year. Chan noted that Hong Kong has also achieved significant recognition, ranking 17th out of 132 economies worldwide and fifth in Asia.
Benjamin Mok, Acting Commissioner for the Development of the GBA, said the HKSAR Government was proactively taking forward GBA development, creating opportunities for Hong Kong companies while supporting Mainland businesses to tap overseas markets via Hong Kong. He added that the region was the best entry point for Hong Kong to integrate into national development. He also pointed out the remarkable progress achieved thus far in facilitating the flow of goods, capital, people and information.
However, Hong Kong SMEs looking to expand into the GBA still face key challenges, including market competition, legal and regulatory issues, and financing and credit risks. During the panel discussion, experts in these areas shared their extensive knowledge of the GBA’s landscape.
Petrina Tam, Convenor of the Chamber’s GBA Working Group, remarked that Hong Kong companies had invested significantly in business services, IT and tech research in Shenzhen, Guangzhou and Zhuhai last year. Additionally, they boast a strong presence in the manufacturing sector in other GBA cities like Dongguan, Huizhou, Jiangmen, Zhongshan and Foshan.
Tam said the GBA Certification System, which provides market access for consumer goods, agricultural products and services, allows items to enter Guangdong, Hong Kong and Macao with a single stamp of approval. Authorities are also working to lower market access barriers caused by varying regulations.
Discussing the requirements and considerations for cross-border transaction banking services, John Wong, Managing Director and Head of Global Payments Solutions at Hang Seng Bank, highlighted the bank’s initiatives, including a financing platform designed to assist businesses in both the Mainland and Hong Kong in going global. Additionally, the bank offers liquidity management solutions for cross-border financial management, supporting payments in over 16 currencies across 244 countries.
Catherine Tsang, Partner at PwC Shenzhen Qianhai, advised companies to stay informed about the latest tax-related policies. She noted that businesses can access entrepreneurial guarantee loans of up to RMB 4 million in cities such as Shenzhen, Guangzhou, Zhuhai and Dongguan. Tsang also detailed the 15% preferential corporate income tax (CIT) incentives available, including applicable areas, requirements, encouraged industries and validity periods.
An essential aspect of economic growth is talent acquisition and mobility, bolstered by mutual recognition for professionals to practice freely across GBA cities.
CK Lee, Managing Director of C K Lee & Associates, emphasized the need for skilled workers in various fields and industries. Fast-growing hubs like Shenzhen, Dongguan, and Zhuhai attracted professionals seeking roles ranging from managers to technical and marketing experts.
Chiang Ling Li, Partner at Tiang & Partners, discussed legal challenges and solutions related to intellectual property, data, and company law. She explained China’s newly relaxed Outbound Data Transfer rules, as well as the Hong Kong Patent Box tax incentive passed on June 26, 2024. Other topics included China’s company law, trade secrets protection, piracy and patent linkage.
Fortune Pharmacal CEO Angel Choi shared her insights into cross-border e-commerce (CBEC) marketing and supply chain management, especially the regulatory differences between Hong Kong and Mainland markets and the evolution of marketing in the GBA.
Concluding the seminar, China Committee Chairman Felix Lee said with the GBA continuing to evolve into a dynamic economic powerhouse, the opportunities for businesses and professionals are vast. By navigating the challenges and leveraging the resources available, enterprises can tap into its potential, driving innovation and growth in the years to come.