The third quarter saw a record high in the Standard Chartered Greater Bay Area Business Sentiment Index in recent years, but trade uncertainties have made the business environment more cautious.

Standard Chartered Bank and the Hong Kong Trade Development Council have released the latest "Standard Chartered Greater Bay Area Business Confidence Index", with the current situation index rising from 53.1 to 54.7 in the third quarter; the expected index has increased from 52 to 55.7, reaching four-year and two-year highs respectively. The latest quarterly survey shows that businesses in the region have seen a significant improvement in confidence in their current business performance and future prospects in the third quarter of this year, mainly driven by the extension of the US-China tariff truce and reduced uncertainty in the external environment. The survey also found that most of the surveyed companies have not been affected by internal competition, with 3.1% of respondents even benefiting from it. About 29% of surveyed companies reported slight negative impacts, while the remaining 5% reported significant negative impacts. Among the companies affected by internal competition, over 70% reported negative impacts on profit and sales, while about 40% mentioned hindrances to recruitment and investment plans. In response to internal competition, Greater Bay Area companies are taking various strategies to address the challenges, including strengthening brand promotion and marketing efforts, cost control and inventory optimization, as well as providing value-added services. Chen Guanlin, Chief Economist for Greater China at Standard Chartered, stated that trade uncertainties may lead to a more cautious business atmosphere, considering the increasing external uncertainties and internal competition challenges in mainland China. He believes that the trend of further diversifying business operations will continue.