Chinese mid-sized companies see business growth over next 3 years
Medium-sized companies on the Chinese mainland are confident of the business growth over the next three years and are focusing on expanding in the domestic market, according to a HSBC report.
Generally, medium-sized companies surveyed expected both their revenue and profit margin to grow steadily in the next three years, the report said.
"As an important part of the national economy, mid-market companies have their own features in business development and market strategies." said Fang Xiao, vice president and director of commercial finance of HSBC China.
"Different from mega-sized companies which are actively expanding in global markets, we found that many mid-sized companies focus more on seizing the opportunities arising from China's economic upgrading and transformation and digging deep to tap the potential of local markets."
One-third of the mid-sized companies on the mainland highlighted tapping market potential as the main channel to increase revenue. This option topped expanding the domestic market which came in second at 24 percent while improving operational efficiency ranked third at 19 percent, according to the report.
Meanwhile, 61 percent of medium-sized enterprises on the mainland believe that investing in technology can bring new business opportunities and 54 percent see green development as the way for companies to survive.
The HSBC report covered 433,000 medium-sized companies from 14 markets globally. It found that about 40 percent of the Chinese medium-size enterprises on the mainland are optimistic about the global economy and nearly 60 percent of them have confidence in the Chinese economy.