The Standard Chartered Hong Kong SME Leading Business Index for the third quarter of 2026 recorded an increase of 0.8 points, bringing the index figure to 44.1. This growth reflects optimism among small and medium-sized enterprises amid easing international geopolitical tensions and positive momentum from the massive adoption of artificial intelligence (AI) technology.
Data from the Hong Kong Productivity Council showed that a 12.2-point surge in the Global Economy sub-index to 33.1 was the primary catalyst for the rise in the composite index. This improvement in perception spread across various sectors, with the import-export trade and wholesale sectors recording the sharpest increase of 15.6 points, followed by professional services which strengthened by 15.3 points.
Kelvin Lau, Senior Economist for Greater China and North Asia at Standard Chartered, mentioned that the stabilization of crude oil prices and reduced tensions between the United States and Iran provided breathing room for exporters. Hong Kong, which has advantages in the electronic components and AI technology sectors, successfully leveraged the global demand cycle to maintain margin stability amidst operational cost challenges.
Despite the positive sentiment, challenges still loom over Hong Kong's retail sector, which saw its index decline by 1.0 point to 41.6. High energy costs that have not yet fully recovered at the consumer level remain the main factor depressing consumer purchasing power. Furthermore, the ability of business operators to maintain profit margins currently heavily relies on the pricing power within their respective industries.
