Prospective businesses considering the Greater Bay Area mostly favor Zhuhai, Shenzhen, and Hong Kong locations, according to the inaugural Standard Chartered GBA Business Confidence Index.

Liu Jianheng, senior economist of Greater China Standard Chartered Bank, cited the city's location advantages, notably for being a strong influence on the west bank of the Pearl River and close proximity to Hong Kong and Macao.

GBA Business Confidence Index presented by Standard Chartered Bank and Hong Kong Trade Development Council [Photo courtesy WeChat account: SC_CN_Wealth]

The survey-based gauge of Greater Bay activity and sentiment was released by Standard Chartered Bank and the Hong Kong Trade Development Council at an online press conference on July 23. It is the first forward-looking quarterly survey on the region's business environment.

In addition to assessing cities, the index also examines industries involved in manufacturing and trade, retail and wholesale, financial service, professional services, and innovation science and technology. The results are based on in-depth research into the overall operation, attitude, and development outlook of 1,000 Greater Bay Area enterprises.

For the second quarter of this year, the "operation situation" and "expectations" indexes are 37 and 47 respectively (the neutral value is 50), as the surveyed enterprises anticipate alleviation from austerity caused by the COVID-19 pandemic.

Moreover, the indexes demonstrate strong policy support of the Chinese central government toward the Greater Bay. The area is to become a global business and innovation center. This is being achieved via accelerated infrastructure construction, development of advanced manufacturing and modern service sectors, and formation of a high-quality living circle, said Nicholas Kwan, research director at the HK Trade Development Council.