The economy of China is the largest in Asia and the second largest in the world. China was Singapore’s largest trading partner in 2022 with total merchandise trade value of S$175 billion, while Hong Kong is Singapore’s sixth largest trading partner in 2022 with total merchandise trade value of S$83.8 billion. Trade with China and Hong Kong amount to 12.8% and 6% respectively of Singapore’s total trade with the world1. 

The Greater Bay Area (GBA) includes Hong Kong, Macau and nine mainland cities in Guangdong province, and is a thriving economic powerhouse that contributes to over 11% of China’s GDP2. A strong financial hub with an excellent geographical advantage, powered by advanced technological innovations and infrastructure, the GBA is one of the most influential and promising economic clusters in the world. 

Combined gross domestic product (GDP) of the 11 cities in the GBA was close to US$2 trillion in 2022, up 25% from US$1.65 trillion in 20193, and is expected to be a driving force for Hong Kong’s financial markets and a wide range of industries. 

According to the SBF’s National Business Survey 2022/ 2023, within Asia, 46% of companies have presence in China, and 21% plan to expand their business into China. 

Separately, SBF organised the 6th China Economic Outlook webinar on 28 September 2023, which was attended by close to 300 senior business leaders from companies in 18 countries and economies, across sectors such as banking and security, consulting, manufacturing, transportation and distribution. 

China’s digital economy has more than doubled between 2016 to 2022 and accounted for more than 40% of China’s GDP in 20224. Findings from a poll conducted during the webinar showed that the top two factors for successful entrance into China’s digital economy market are the importance of establishing strong local partnerships (76.6%) and adapting to local consumer preferences (58.5%). Also, 76.6% of responses identified regulatory hurdles as a significant challenge for foreign companies when entering China's digital economy market.