Doing business in Hong Kong
Expats doing business in Hong Kong will find themselves afloat amidst a laissez-faire economy, by some measures one of the most open and transparent in the world.
Despite its close proximity to Communist China, and its status as a special administrative region of that country, Hong Kong is a world apart in its respect for private property and personal freedom, and its emphasis on the non-interventionist policies of local government.
In fact, as a consequence of historical ties, Hong Kong is more closely related to Britain, and shares virtually identical company and trust law, and a largely similar business culture.
Hong Kong is ranked #2 (out of 183 countries) on the World Bank’s "Ease of Doing Business" table, and scores particularly highly in key business areas such as dealing with construction permits, cross-border trading and the ability to enforce contracts. Doing business in Hong Kong is facilitated by the region’s excellent infrastructure, free and fair competition, sophisticated financial networks, well-educated work force and high number of skilled and industrious entrepreneurs.
It comes as no surprise that the independent region has emerged as a key business destination, a magnet for global capital and multinational businesses.
The business culture in Hong Kong tends to be conservative, both in terms of dress - formal suits are expected, and business conduct - punctuality, mutual respect and deference to seniority are all practised.
The Asian concept of saving face applies in Hong Kong, which means one should avoid, at all costs, embarrassing or confronting another person. If carrying bad news, never present this in front of others. Containing your emotions is very important, as this culture has a very low opinion of those who openly display anger, irritation or temper.
Bowing as a form of greeting is not automatically expected of westerners, though, if no handshake is offered a bow is appropriate. In general, however, avoid physical contact, which is considered taboo, and respect personal space, which is generally larger than in western contexts.
Pay close attention to your choice of words – never use confrontational or vulgar language and never use an expletive. Poor choices of words, or even tone of language, can be enough to sever a relationship with a business. This may not be evident at the time, but the message will become clear as future efforts to meet or do business are continuously deflected.
Tea is routinely served at business meetings. It is impolite to sip from your cup until your host has drunk from his.
Expats living in Hong Kong will find they're quite often asked by locals 'have you eaten', which is in fact a subtle form of greeting; this is the western equivalent of being asked ‘how are you’ and is not an invitation to discourse on your recent meal.
Punctuality is key, and when late, an effusive and repeated apology should be made, even if you're not at fault for the delay.
Honk Kong is one of the world’s most international cities and expats are integral to its economy. There is little prejudice, nor is there hostility towards foreigners; although, observing cultural etiquette is vital in ensuring equitable treatment.
The World Bank rates Hong Kong as the 6th easiest country in which to start a business, with the entire process taking six days and entailing three simple procedures.
Business language: Mandarin and English. The larger the company one deals with, the more likely that English is spoken. In many cases a translator will be required.
Hours of Business: Monday to Friday 9am to 5pm; Saturdays 9am to 1pm
Dress: Conservative dark suits; avoid brightly coloured ties. In social settings avoid wearing blue or white coloured clothes as these are associated with mourning.
Gifts: Gifts are expected during introductions, and on important anniversaries. Do not open the gift in the presence of the giver. Receive gifts with both hands. Avoid giving timepieces as gifts, as they are associated with death. Blankets are also to be avoided as they represent a decline in future prosperity. During the Chinese New Year give gifts of cash to children and to people who provide services to you.
Gender equality: Women play a significant role in business, but expats may still notice that male colleagues are deferred to in business meetings. In general, Confucian, conservative attitudes toward women will be found in smaller companies.
Despite its close proximity to Communist China, and its status as a special administrative region of that country, Hong Kong is a world apart in its respect for private property and personal freedom, and its emphasis on the non-interventionist policies of local government.In fact, as a consequence of historical ties, Hong Kong is more closely related to Britain, and shares virtually identical company and trust law, and a largely similar business culture.
Hong Kong is ranked #2 (out of 183 countries) on the World Bank’s "Ease of Doing Business" table, and scores particularly highly in key business areas such as dealing with construction permits, cross-border trading and the ability to enforce contracts. Doing business in Hong Kong is facilitated by the region’s excellent infrastructure, free and fair competition, sophisticated financial networks, well-educated work force and high number of skilled and industrious entrepreneurs.
It comes as no surprise that the independent region has emerged as a key business destination, a magnet for global capital and multinational businesses.
Business culture in Hong Kong
The business culture in Hong Kong tends to be conservative, both in terms of dress - formal suits are expected, and business conduct - punctuality, mutual respect and deference to seniority are all practised.
The Asian concept of saving face applies in Hong Kong, which means one should avoid, at all costs, embarrassing or confronting another person. If carrying bad news, never present this in front of others. Containing your emotions is very important, as this culture has a very low opinion of those who openly display anger, irritation or temper.
Bowing as a form of greeting is not automatically expected of westerners, though, if no handshake is offered a bow is appropriate. In general, however, avoid physical contact, which is considered taboo, and respect personal space, which is generally larger than in western contexts.
Pay close attention to your choice of words – never use confrontational or vulgar language and never use an expletive. Poor choices of words, or even tone of language, can be enough to sever a relationship with a business. This may not be evident at the time, but the message will become clear as future efforts to meet or do business are continuously deflected.
Tea is routinely served at business meetings. It is impolite to sip from your cup until your host has drunk from his.
Expats living in Hong Kong will find they're quite often asked by locals 'have you eaten', which is in fact a subtle form of greeting; this is the western equivalent of being asked ‘how are you’ and is not an invitation to discourse on your recent meal.
Punctuality is key, and when late, an effusive and repeated apology should be made, even if you're not at fault for the delay.
Attitude toward foreigners in Hong Kong
Honk Kong is one of the world’s most international cities and expats are integral to its economy. There is little prejudice, nor is there hostility towards foreigners; although, observing cultural etiquette is vital in ensuring equitable treatment.
Starting a business in Hong Kong
The World Bank rates Hong Kong as the 6th easiest country in which to start a business, with the entire process taking six days and entailing three simple procedures.
Doing business in Hong Kong: Fact facts
Business language: Mandarin and English. The larger the company one deals with, the more likely that English is spoken. In many cases a translator will be required.
Hours of Business: Monday to Friday 9am to 5pm; Saturdays 9am to 1pm
Dress: Conservative dark suits; avoid brightly coloured ties. In social settings avoid wearing blue or white coloured clothes as these are associated with mourning.
Gifts: Gifts are expected during introductions, and on important anniversaries. Do not open the gift in the presence of the giver. Receive gifts with both hands. Avoid giving timepieces as gifts, as they are associated with death. Blankets are also to be avoided as they represent a decline in future prosperity. During the Chinese New Year give gifts of cash to children and to people who provide services to you.
Gender equality: Women play a significant role in business, but expats may still notice that male colleagues are deferred to in business meetings. In general, Confucian, conservative attitudes toward women will be found in smaller companies.
Do’s and don’ts of business in Hong Kong
- Do - make casual conversation - but not about personal, financial or political matters
- Don’t – expect to get any business done over Chinese New Year
- Do – get a Chinese-language version of your business details printed on the reverse side of your card.
- Do – get business documents printed in both English and Chinese
- Don’t - hold back on burping during a business meal – it conveys appreciation
- Do – leave some food on your plate to suggest you have been abundantly fed.
