Standard Chartered Hong Kong's SME Leading Business Index stands at 45.7, with Hong Kong SMEs still exercising caution in their investments.

The Hong Kong Productivity Council announced the fourth quarter "Standard Chartered Hong Kong SME Leading Business Index". The comprehensive business index for the fourth quarter was reported at 45.7, an increase of 3.2 compared to the previous quarter, returning to the level of the third quarter of last year. Among the five major sub-indices, "profit performance", "global economy" and "business conditions" all saw significant growth ranging from 4.9 to 6.8, but all remained below 50; "hiring intentions" saw a slight increase; while "investment intentions" continued to hover near the neutral level of 50, reflecting the cautious optimism of SMEs in terms of investment. Among the 11 major industries, except for "professional and commercial services" and "construction industry" which saw slight declines, the other 9 industries rebounded. Liu Jianheng, Senior Economist for Standard Chartered Greater China, believes that the quarterly increase in the comprehensive business index was mainly driven by the significant rate cut by the Federal Reserve in September and major economic stimulus measures in China. As the index is still below the average of the past two years, more positive news support and alleviation of uncertainty from the US elections are needed for business sentiment to continue to recover optimistically. The sub-index for "investment intentions" did not show improvement on a quarterly basis, reflecting the need for further policy support and external positive factors to improve SMEs' cautious attitude towards long-term business prospects.