Companies are looking for Business Opportunities within Their Own Region: an HSBC Survey

Companies are looking for Business Opportunities within Their Own Region: an HSBC Survey

According to a new HSBC survey, several companies are increasingly looking for business opportunities within their own regions due to growing uncertainties in the global trading system.

Stuart Tait, Head of commercial banking at HSBC for Asia Pacific said that they are seeing a shift in emphasis on intra-regional trade as intra-Asia has become equivalent to the continent’s trade with Europe and North America combined.

CNBC reported that Asia is becoming more connected, citing Tait at China International Import Expo in Shanghai.
In the HSBC’s survey of more than 8,500 companies, it was discovered that about 63% of firms believed that political headwinds are growing stronger as governments are planning to secure their home economies. As reported in CNBC, the poll was conducted in August and September.

Results of the survey indicated that percentage of firms in Europe and North America reporting Asia as a top target for future trade growth sank in the initial quarter of 2018. Further, companies in Asia citing North America as potential trade target also fell in the same quarter.

On the contrary, companies in North America are planning to do business within the region in the next three to five years. More Asia Pacific companies are focusing on China, particularly as future growth market.
According to Tait, regional trade connectivity trend has been beneficial for China overall. In the recent years, companies in China have moved to manufacture and export to emerging economies in the Asia Pacific region, he added.

Although many firms in the United States remain positive about the outlook of global trade, most companies with negative outlook referred tariffs and trade uncertainty between the US and China as key concerns.

According to Noel Quinn, Chief Executive of Global Commercial Banking at HSBC, growing government concerns about protecting the home economies is reducing their appetite to grow in international trade. While some are looking for business opportunities closer to home, other are adapting new approach for the business to stay strong in the future.

The survey also indicated that 50% of the companies expect free trade agreements which they apply to their home country and industry, to gain advantages for the company over the next three years.

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Rohit Bhisey

Rohit Bhisey

Holding a vast experience in the field related with the Internet marketing and market research. His dedication towards perfection, dedication and passion have enables him to achieve immense success in his field. He provides accurate and in-depth analysis about the current growth predictions of the particular market. Presenting before the world about the accurate and clearer understanding regarding current development and consequences. He is also expert in formulating various strategies and plan to drive web traffic. He is also passionate about writing news article on lifestyle, business and technology.

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