Hong Kong Trade Finance Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 5.00 % |
| Market Concentration | Medium |
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*Disclaimer: Major Players sorted in no particular order |
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Hong Kong Trade Finance Market Analysis
The Hong Kong trade finance market is expected to register a CAGR greater than 5% in the forecasted period. Trade finance is the financing of goods or services in a trade or transaction from a supplier to the final consumer. 3% of the USD 3 trillion in annual global trade comes from it. "Trade finance" refers to a large class of financial instruments that an importer or exporter can use. These include finance for purchase orders, stock trading, structured commodities, account finance (discounting and factoring), chain supply finance, and letters of credit.
Trade financing aids business growth by providing the capital required to purchase inventory and goods. The success of any company depends on its capacity to manage its working capital efficiently. A corporation can use trade finance to expand its financing options based on its trade cycles or free cash from its current inventory or receivables. Hong Kong is one of the best places in the world to conduct business. Hong Kong ranks fourth internationally for business ease in the World Bank's Doing Business 2019 Report. Hong Kong came in fifth place out of 190 economies regarding how simple it is to launch a firm. Starting a business in Hong Kong is quick, straightforward, and inexpensive.
The COVID-19 epidemic exacerbated Hong Kong's economic issues in 2020, compounding the deterioration brought on by the turmoil in 2018. The government was anticipated to use its financial reserves to stabilize the economy in the medium term. But, the US-China trade war and China's expanding influence in the nation will contribute to the country's unpredictable geopolitical situation. Hong Kong is expected to continue acting as a bridge between East and West, albeit to a lesser extent.
Hong Kong pursues a free trade policy and does not maintain trade barriers. The right to manage the import and export of products is unrestricted. However, there are still rules and clearance processes that must be followed while importing and exporting commodities.
Hong Kong Trade Finance Market Trends
Accelerated Digital Adoption is Driving the Market
Every cloud contains a bright spot, as the saying goes. We must search for and seize any silver linings while the globe navigates the deteriorating US-China ties, the technology-driven trade war, and the far-reaching effects of COVID-19. One such silver lining is the quickening adoption of digital technologies. The pandemic sparked many positive changes, with digitization playing an important role in many of them. Digital is playing a big part in meeting the need for funding, involving customers, and ensuring transparency.
The requirement to involve regulators and the trading community in developing uniform rules of conduct was another crucial shift brought about by COVID-19. Nearly all banks are established institutions, and there is no liquidity problem. To aid enterprises, the trade finance community must band together.
Small and Medium Enterprises are Driving the Market
Small and medium-sized firms (SMEs), which make up the majority of businesses and employment in Asia and are the backbone of many economies, are ignored by global finance. Before the pandemic, the trade finance deficit was anticipated to be USD 1.5 trillion. By 2020, it had grown to USD 1.7 trillion. Covid's persistence, digitization's accelerating pace, and the skills gap all portend poorly for SMEs, especially in emerging economies. The technology is available to restructure and broaden the scope of trade finance completely. This new ecosystem includes unmistakable potential for Hong Kong, Asia, and the world.
The pandemic impacted everyone, but some were more susceptible than others. Smaller companies often lack access to financial facilities that larger corporations could use to help them weather difficult times. Therefore, they were the most hit. Although the government took several relief measures to aid SMEs, many still face difficulties. The significance of banks helping SMEs with liquidity is that critical supply chain anchors must now use supply chain financing initiatives to give SMEs access to operating cash since small and medium-sized enterprises (SMEs) are the backbone of most ASEAN economies and employ almost 97% of the people in the region. It is in everyone's best interest to help them survive and grow in the new normal.
Hong Kong Trade Finance Industry Overview
The report covers the major Hong Kong trade finance market players. Regarding market share, the major traditional players are currently dominating the market. Here is a list of some of the top companies now ruling the market: Bank of China, Standard Chartered, Bank of Communications, Hang Seng Bank, and HSBC, among others.
Hong Kong Trade Finance Market Leaders
Bank of China
Standard Chartered
Bank of Communications
Hang Seng Bank
HSBC
*Disclaimer: Major Players sorted in no particular order
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Hong Kong Trade Finance Market News
- October 2022: Creating a new "Hong Kong Investment Management Co., Ltd." will allow the continued use of financial reserves to support industrial and economic growth.
- October 2022: Build an international carbon market in Hong Kong, and promote Hong Kong as the preferred financing platform for governments and green businesses operating on the mainland and abroad. It assists the Hong Kong Stock Exchange in its ongoing efforts to foster collaboration with financial institutions in Guangzhou to develop the carbon market.
Hong Kong Trade Finance Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitutes
4.4.5 Intensity of Competitive Rivalry
4.5 Insights on Various Regulatory Trends Shaping Trade Finance Market
4.6 Insights on Impact of Technology and Innovation in Trade Finance Market
4.7 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 Service Provider
5.1.1 Banks
5.1.2 Trade Finance Companies
5.1.3 Insurance Companies
5.1.4 Other Service Providers
5.2 Application
5.2.1 Domestic
5.2.2 International
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration & Overview
6.2 Company Profiles
6.2.1 Bank of China
6.2.2 Standard Chartered
6.2.3 Bank of Communications
6.2.4 Hang Seng Bank
6.2.5 HSBC
6.2.6 DBS Hong Kong
6.2.7 China Citic Bank International
6.2.8 CMB Wing Lung Bank
6.2.9 Shanghai Commercial Bank
6.2.10 Public Bank*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
Hong Kong Trade Finance Industry Segmentation
The term "trade finance" is used to describe a variety of tactics used to facilitate global trade. It refers to domestic and international trade transactions and denotes funding for commerce. A buyer and a vendor of products and services are necessary for a commerce transaction. The report covers a thorough knowledge of market segmentation, product types, current market trends, market dynamics modifications, growth possibilities, and examination of market size and projections for different segments. The Hong Kong Trade Finance Market is segmented by service providers (banks, finance companies, insurance companies, and other service providers) and applications (domestic and international). The report offers market size and forecasts for Hong Kong Trade Finance Market in value (USD million) for all the above segments.
| Service Provider | |
| Banks | |
| Trade Finance Companies | |
| Insurance Companies | |
| Other Service Providers |
| Application | |
| Domestic | |
| International |
Hong Kong Trade Finance Market Research FAQs
What is the current Hong Kong Trade Finance Market size?
The Hong Kong Trade Finance Market is projected to register a CAGR of greater than 5% during the forecast period (2024-2029)
Who are the key players in Hong Kong Trade Finance Market?
Bank of China, Standard Chartered, Bank of Communications, Hang Seng Bank and HSBC are the major companies operating in the Hong Kong Trade Finance Market.
What years does this Hong Kong Trade Finance Market cover?
The report covers the Hong Kong Trade Finance Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Hong Kong Trade Finance Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Hong Kong Trade Finance Industry Report
Statistics for the 2024 Hong Kong Trade Finance market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Hong Kong Trade Finance analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
