HSBC survey: SME confidence returns to pre-crisis levels

On the afternoon of February 3, a recent survey of the HSBC SME confidence index showed that confidence in SMEs in mainland China had rebounded sharply to the level before the financial turmoil.　　An increasing number of SMEs expressed optimism about the operating environment in the first half of 2010 and planned to increase investment and expand recruitment. At the end of 2009, the confidence index of Chinese SMEs climbed nearly 20 points from six months ago to 124, ranking third in the entire Asian market, after Vietnam (160) and India (132).　　Globally, SMEs in most countries and regions participating in the survey are also generally well off, while emerging markets are far more confident than developed markets. Saint Lin, general manager of the business and financial services of HSBC (China) Limited, said: "While the global economy remains uncertain, we have experienced a general strengthening of market confidence in SME clients, with the continued effect of government stimulus measures, including chemical, commodity, machinery and other sectors of the trade volume has risen sharply." This survey further confirms this trend and reflects the overall good of China's economic environment.　　"HSBC surveys show that more than 40% (41% per cent) of mainland SMEs expect the Chinese economy to accelerate growth in the next six months, a significant increase from 23% a year earlier. Similarly, compared with the survey conducted six months ago, the proportion of mainland SMEs surveyed to expand their investments in the first half of this year also increased from 30% to 35%.　　In addition, the number of SMEs interviewed in the mainland, which is planned to increase recruitment within six months, has increased by nearly 10% per cent compared with the previous 25%. This survey is the first to deal with the cross-border trade or other overseas business of SMEs. In 20 of the world's surveyed markets, the average proportion of SMEs involved in international operations is about One-third (31% per cent), compared to different markets, such as Brazil (4%), Hong Kong (52%), Viet Nam (66%) and Qatar (69%).　　The proportion of mainland China is 22%. The survey also shows that in the next two years, the proportion of SMEs involved in international business will generally increase, and the global average will rise from the current 31% to 35% in 2011.　　In mainland China, the ratio is expected to reach 29% in 2011, near the global average, at a faster rate than the global average. Mainland SMEs surveyed said the main reasons for their involvement in international markets include: capturing business opportunities for sales growth (62%), suppliers or business partners from overseas (54%), and expanding overseas markets (48%).　　The results are broadly in line with the overall outcome of the Asian market. Of course, small and medium-sized enterprises to carry out international business is not smooth.　　SMEs surveyed in the mainland considered that the biggest barriers to overseas business were: lack of recognition or contact with overseas markets (31%), volatility in markets such as exchange rates and interest rates (26% per cent), and insufficient profitability or profitability (24%). Fangwengui, general manager of China SME Financial Services, said: "Mainland SMEs are creating jobs,An important impetus to boost investment, increase productivity and boost China's economic growth. With the growth of SMEs in the mainland, more enterprises look overseas markets, to seek a broader development opportunities. With its global network and local expertise, HSBC will help mainland SMEs explore international markets and explore their potential. "(Snow ting from Beijing)