An international survey of 6,600 business owners reflected a run of positive news in the Hong Kong economy, according to Kevin O'Shaughnessy, principal of accounting firm Grant Thornton that carried out the poll. "It is encouraging to see that Hong Kong stands out in the survey with a strong drive and initiative to develop new markets," he said, adding that, "Hong Kong's strong entrepreneurial spirit remains one of our competitive advantages."

Mr O'Shaughnessy said the Cepa free trade deal, coupled with the upswing in the global economy had also revived confidence in the Hong Kong business community. Click for full survey.

Banks and luxury retailers recognise Hong Kong appeal

The rosy economic outlook is also attracting overseas companies, with banks and luxury retailers among the big names looking to use Hong Kong's business platform to serve the Asia region.

Three leading financial institutions - UK-based Lloyds TSB Group, Dublin-based DePfa Bank and US-based United Commercial Bank - recently opened representative offices adding to Hong Kong's strong international financial community.

Luxury retailers have their eyes firmly on the China market, with Louis Vuitton, Prada, Christian Dior, Hermes and Ermenegildo Zegna all recently strengthening their Hong Kong presence. French underwear specialist, Hom, is also opening more stores. The recent liberalisation of visa requirements for mainland visitors has resulted in a surge of shopping tourists keen to use Hong Kong-based retailers to keep them abreast of international trends.

Newcomers to Hong Kong include leading German toymaker NICI which is opening its flagship Asia Pacific store here and, leveraging on local experience, UK retailer French Connection Group plc has teamed up with Hong Kong partner I.T Ltd to open its first store in the territory.

Economist estimates fall well short, as record tonnage passes through Hong Kong

The buoyant economy was reflected in stronger than expected trade numbers. The value of exports rose 9.4 per cent in October year on year to nearly HK$165 billion (US$21.2 billion) far outstripping economists estimates of 6.8 per cent growth. Cumulative growth in the first ten months was 11.5 per cent on the same period in 2002.

Intra-Asia trade was particularly strong, with exports to the mainland, Taiwan and Thailand topping the list. Europe also showed positive gains.

Hong Kong's International Airport was a major beneficiary, posting a record tonnage throughput of 262,000 tonnes in October, up five per cent on the previous year. Over the past 12 months, a record 2.62 million tonnes of cargo has passed through the airport, up nearly eight per cent year on year.

A record number of visitors arrived in Hong Kong in October. The total of 1.69 million was a 7 per cent increase on the same month last year.

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Click External Goods trade soars in October