Airwallex Hong Kong’s first trade report reveals that 90 percent of import and export businesses embrace fintech to expedite cross-border operations

• Hong Kong trading businesses continue to see Hong Kong as a vital international business hub to facilitate global import and export trade, with 61 percent planning expansion into Northeast Asia and/or Southeast Asia as strategic imperatives

• Over 50 percent said the rising costs of doing business and the complexities of managing global money movement have added to the challenges

• Digitisation of finances and market expansion via global eCommerce marketplaces are critical investments for future success

Airwallex Hong Kong recently announced the launch of its inaugural import and export trade report. Over half of the surveyed import and export traders operating out of Hong Kong are grappling with rising business costs, as the majority eye fintech solutions and market expansion into Northeast Asia and Southeast Asia to stay competitive. In the report, leading global payments and financial platform Airwallex sheds light on how SMEs can unlock new business and international trade opportunities.

"As global trade evolves, Hong Kong remains a critical gateway for businesses looking to expand into new markets, whether they are sourcing from international suppliers or selling to customers across borders, said Arnold Chan, Asia General Manager, Airwallex. “Our report shows that SMEs are embracing fintech not just to stay competitive, but to drive growth across borders.”

SMEs continue to see Hong Kong as a vital international business hub for global trade, with expansion into Northeast Asia and Southeast Asia seen as strategic imperatives

Hong Kong’s prominence as an international trade hub is well established, with 75 percent of respondents highlighting the city’s tax-friendly environment as a major draw. Nearly 70 percent also value Hong Kong’s strategic proximity and access to the Mainland China market, with over half appreciating its robust financial infrastructure, including the free flow of capital and liquid financial markets.

Building on these advantages, numerous companies are strategically establishing themselves in Hong Kong as a gateway to new markets. In fact, 82 percent of the respondents indicated plans to trade with at least one new region within the next six months, with Northeast Asia, Southeast Asia and Europe at the top of the list.

The rising costs of doing business and the complexities of managing global money movement add to the challenges

Global supply chain disruptions and inflationary pressures have posed significant challenges for trading businesses as they strive to remain competitive. 55 percent of the respondents identified rising operational costs, particularly in supply chain and logistics, as a top concern. Additionally, 51 percent reported increasing difficulties in managing local and international cash flow, especially when cross-border transactions are complicated by varying regulatory requirements and currency risks.

In response to these challenges, nearly half of the respondents are actively seeking ways to cut costs associated with logistics and inventory, professional fees, office rent and utilities, and financial market volatilities, including banking fees, payment transaction costs and foreign exchange fluctuations.

“In today’s fast-paced import and export environment, the demand for innovative solutions is growing as businesses seek to overcome inefficiencies. At FedEx, we are committed to helping businesses navigate these challenges by offering flexible logistics solutions for express and freight shipments. We also collaborate with like-minded industry partners, such as Airwallex, a financial platform that streamlines complex cross-border payment operations, supporting our customers’ cross-market activities,” said Anthony Leung, Managing Director, FedEx, Hong Kong and Macau.

Digitisation of finances and market expansion via eCommerce are critical investments for future success

Businesses recognise the potential of emerging technologies and solutions and plan to invest in the automation and digitisation of finances, global eCommerce platforms and marketing and CRM technology over the next three years. Notably, 40 percent of respondents identified their companies as pioneering innovators eager to experiment with new technologies to enhance their operations.

Among the three in four respondents already using fintech for payments, 92 percent expressed satisfaction with the pay-in, pay-out and FX services provided by fintechs, demonstrating the effectiveness and reliability of these solutions in enhancing financial operations. As cross-border trade accelerates, the advantages of digital payment and fintech solutions are becoming increasingly evident for SMEs’ bottom lines. An overwhelming majority (90 percent) are open to incorporating more fintech solutions for FX and international transfer services.

"Fintech adoption is delivering significant benefits to SMEs, particularly in trading. As a leading fintech in Hong Kong, Airwallex empowers trading companies with financial solutions that streamline operations, simplify payments and unlock new global opportunities, enabling them to conduct business across over 150 regions and in more than 60 currencies," Chan added.

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Get the full report here