Third of Japan Firms Still Considering Hong Kong Presence After Security Law
Exit, downsize or rethink operations? The dilemma of Japanese firms in Hong Kong.
(Bloomberg) -- A third of Japanese firms with operations in Hong Kong are still mulling whether to exit, downsize or rethink their operations in the city, according to the latest survey by Japan External Trade Organization published Monday.
Compared with survey results from three months ago, the proportion of companies saying they’re at least considering a reorganization of their operations in Hong Kong remained largely unchanged at 34%, reflecting continued concerns over developments in the city.
Some 13% said they had already decided to reduce their presence, while 1.7% saying they were pulling out altogether.
Japanese companies’ reconsideration of their Hong Kong strategy comes as senior Japanese officials comment on how the city’s difficulties may be offering a moment of opportunity to attract businesses to Japan and build its reputation as an international financial hub.
SBI Holdings Inc.’s Chief Executive Officer Yoshitaka Kitao said earlier this month that the online brokerage is planning a gradual withdrawal from Hong Kong, while it considers a push into China.
The report flagged that among around 300 respondents to the survey, some said there was a decline in their investment appetite for doing business in Hong Kong. Some firms also said local demand had fallen.
Still, in one sign that the sense of unease has peaked for now, the number of survey respondents expressing concern about the national security law at the center of the crackdown in Hong Kong declined from around 80% in July to two-thirds in the October survey.
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