Hong Kongs economic strengths are in light-industrial manufacturing a sector that has been overlooked. Hong Kong is an undisputed powerhouse in the trading and managing production capacities all over the world. This is a highly sophisticated business that requires entrepreneurial flair and strong management skills: a unique combination. The SMEs have invested steadily in upgrading every aspect of the supply chain. They produce and help design some of the worlds best-known brands, particularly in electronics, garments and accessories, as well as toys. Hong Kongs SMEs have a strong record in value creation. By and large, they are doing well even during tough times. Many of the competitive players are still in private hands and have the potential to list as they require more capital to exploit the China and international markets.
This report was published by CLSA Emerging Markets.