Almost half of companies in the SAR have a positive outlook regarding business conditions in the next 12 months, a survey by the Hong Kong General Chamber of Commerce (HKGCC) suggests.

The poll of 236 professionals from business services, wholesale and construction companies, carried out between October 30 and November 12, found optimism among 48.3 percent of respondents, up from 18.3 percent a year earlier.

Meanwhile those holding a negative view of their prospects over the next 12 months fell to 15.3 percent, from 44.3 percent a year earlier.

Just over 40 percent of the respondents said they expect an increase in business turnover, about 44 percent expect no change, while under 16 percent forecast a decline.

“Companies are definitely more optimistic than last year, when [US] President Trump was threatening to raise tariffs, which created a lot of uncertainties for businesses. This year’s survey might also have been influenced by the US and China agreement to a tariff truce and peace talks between Israel and Palestine,” said HKGCC chairwoman Agnes Chan.

Meanwhile, the HKGCC also announced its economic forecast for 2026, expecting real GDP growth of 2.7 percent.

"While the overall local business environment should improve, sluggish global growth, heightened geopolitical risks and the AI race will continue to reshape markets in ways that could change the world," the body said.

HKGCC economist Doris Fung also welcomed the US Federal Reserve's latest interest rate cut, saying it will reduce investment costs and benefit Hong Kong's property market.