Productivity Council Releases Q4 2026 Standard Chartered Hong Kong SME Index: Composite Business Index Slightly Rises to 44.8

The Hong Kong Productivity Council (Productivity Council) announced on October 22, 2026, the Q4 2026 "Standard Chartered Hong Kong SME Leading Business Index," with the composite business index slightly rising to 44.8, an increase of 0.7 from the previous quarter, indicating that the business conditions and profitability of SMEs have reached a new high for the year.

Business Conditions and Profitability Improve

According to the survey results, the sub-indices for "business conditions" and "profitability" rose to 42.3 and 39.9, respectively, both reaching new highs for the year, reflecting an improvement in SMEs' confidence regarding business and profitability prospects. However, the overall business sentiment remains cautious.

Among the five sub-indices, the "business conditions" and "profitability" sub-indices for the "Accommodation and Food Services" sector saw significant increases of 11.7 each; the "Retail" sector also recorded improvements in these two sub-indices, rising by 5.8 and 5.3, respectively. The investment intention index slightly increased to 50.8, remaining above the neutral level, while recruitment intentions remained stable.

Digitalization Needs of Cross-Border SMEs

The survey also revealed that over 90% of cross-border SMEs wish to leverage digital tools to support business development. The most commonly used digital tools include social media marketing, cross-border payment and remittance platforms, and AI tools. SMEs expect digital tools to assist in finding overseas customers and exploring business opportunities.

Ms. Fiona Fung, Chief Market Officer of the Productivity Council, pointed out that as the mainland, ASEAN, and other overseas markets continue to unleash growth potential, more and more SMEs view cross-border business as an important strategy for expanding new customer sources and diversifying market risks. The Productivity Council will continue to support the digital transformation and AI application of SMEs, helping businesses enhance their digital capabilities and market competitiveness.

Looking Ahead

Looking ahead to the next three years, 48% of SMEs believe that growth in international market demand will benefit cross-border business development, indicating that market demand, policy support, and technology application will be the main drivers for SMEs to expand into overseas markets.

This survey was conducted from August to September 2026, successfully interviewing 820 local SMEs, with an additional 24 local SMEs that have expanded to other cities in the Greater Bay Area as supplementary samples.