The COVID-19 pandemic has not held up the economic development of China’s Guangdong-Hong Kong-Macao Greater Bay Area (GBA). Rather, it has led to an acceleration of the region’s growth with Hong Kong acting as a super connector to link the city cluster to global markets.

Despite the challenges caused by the pandemic, the GBA has proven its potential for prosperity. Multinational businesses are seeing emerging opportunities in the region and moving quickly to take their plans forward.

Signs point to growth

Market confidence in the GBA remains high. In a recent survey HSBC conducted with KPMG and the Hong Kong General Chamber of Commerce of over 700 business executives across mainland China, Hong Kong and Macau, more than 80% of them expect the GBA to grow faster than the rest of the country.

Alongside this confidence is the trend of China’s rising trade connections and activity. An example of this is the Regional Comprehensive Economic Partnership (RCEP), a free-trade agreement between ASEAN, Australia, China, Japan, New Zealand and Republic of Korea which went into force at the start of 2022 and presents a way for the GBA to enhance its existing role as a facilitator of cross-border trade and capital flows. [1]

Emerging GBA opportunities

The GBA is marked for growth as a vibrant city cluster, and it has several key advantages that are leading to new opportunities. These include improved connectivity and rising affluence, as well as the combined strengths of the city cluster in terms of digital development, infrastructure, technology and manufacturing. From within the GBA, a deepening pool of 450,000 high-net worth families are looking to diversify their investments to products outside China. [2] From outside the GBA, multinational companies are looking to invest in industries in the region.

The opportunities in these areas are diversifiying through a focus on the process of technology adoption, the development of ESG solutions and green financing, as well as investment and financial services to support those areas.

This all comes together to form an estimated GDP of around USD4.7 trillion for the GBA by 2030, representing massive potential for businesses. [3]

Hong Kong as a connector

Hong Kong plays a crucial role in a number of initiatives that are helping domestic and international businesses alike with expansion in the GBA:

Cross-boundary Wealth Management Connect Scheme – This mutual market access scheme allows eligible mainland China, Hong Kong and Macau residents to invest in wealth products in each other’s markets.
Greater Bay Area Green Finance Alliance – Launched by green finance associations across the GBA cities, the alliance works to foster green investments and financing solutions.

The GBA has also deepened the pool of opportunities available for venture capital firms based in Hong Kong, as the city’s strong financial and legal infrastructure serves as a connector for companies to tap into the talent pools and resources in the region.

How communications can help

As interest in the GBA continues to grow, communications will be increasingly important to ensure brand messaging is conveyed:

Ensuring key messages are communicated to target audiences – Communications will need to be tailored to specific audiences and relayed through appropriate media or social channels.
Keeping communications clear and concise – Avoiding miscommunication is critical, especially in creating GBA-related content for audiences and the media in the region and internationally.

Paradigm can help you with your communications in the GBA. Get in touch with us to start the conversation.

[1] https://www.oecd.org/economy/china-economic-snapshot/

[2] https://www2.deloitte.com/cn/en/pages/financial-services/articles/wealth-management-connect-in-the-gba.html

[3] https://www.business.hsbc.com.hk/-/media/library/business-hk/pdfs/en/gba-booklet-english-version.pdf

What businesses need to consider to springboard into the GBA