A robust retail sector is contributing to Hong Kong's continued strong economic performance (photo credit: HKTB)

Hong Kong's mid-size companies surged ahead of competitors around the world, and the city has overtaken Shanghai as China's most competitive city, according to two recent surveys.

The Grant Thornton International Business Survey 2006 found that over 82 per cent of mid-sized business in Hong Kong recorded growth at above the global average this year - a world leading score. Grant Thornton partner Gary James said an upturn in tourism arrivals, buoyant consumer spending and strong export sales proved beneficial to a wide range of businesses. The survey polled 7,000 mid-sized business owners in 30 countries last year. 

In a separate survey, the Chinese Academy of Social Sciences put Hong Kong top of the list of 200 cities in its 2005 annual report on urban competitiveness.  The assessment was based on human resources, corporate management, social ability and public service standards. This was the first time that Hong Kong, Macau and Taiwanese cities were included in the report. 

Hong Kong was tops in five of the eight categories. In global terms, the academy ranked Hong Kong 11th in competitiveness out of 100 countries and regions with the US first and China 34th.

Long-term outlook strong

The robust economic scene continues with reports of strong profits from Hong Kong Exchanges and Clearing (HKEx), which manages Asia's second-biggest stock market. It registered a 27 percent increase in net profit last year on soaring trading volumes, a record wave of mainland listings, continued economic recovery, influx of foreign funds and upbeat market sentiment. 
HKEx earned HK$1.34 billion (US$172 million) last year, compared with HK$1.06 billion (US$136 million) in 2004.

"We remain optimistic about the long-term prospects of our business and the market," said HKEx Chairman Charles Lee.

Most economists remain upbeat about Hong Kong's economic performance. The most positive was from Standard Chartered Bank which expects Hong Kong's export driven economic growth to be at 6 per cent fuelled by robust private consumption, active job and property markets. The forecast is more optimistic than the official Government estimate of between 4 to 5 per cent of real growth.