Survey: 72% Hongkongers Attracted To mainland GBA Opportunities

Interest is high among Hong Kong people to embrace a Greater Bay Area (GBA) lifestyle. Around 40% of respondents in a new survey said they intended to work, study, or retire in GBA cities in mainland China in the next 12 months of the border re-opening. The figure rose to 72% when the period was expanded to beyond 12 months.

The report, jointly published by HSBC and Oliver Wyman, examines why Hong Kong residents might want to work, set up or run a business, study, or retire in GBA cities in mainland China. At present, nearly half a million Hong Kong people reside in Guangdong Province.

Nearly half of those expressing an interest in exploring cross-border opportunities said they would also be interested in pursuing more than one activity, such as studying and then finding a job, or working and then retiring.

Daniel CHAN, Head of Greater Bay Area, HSBC said: “We see an evolving one-hour living circle in the GBA, which is made possible by world-class cross-boundary transportation networks and facilities completed in recent years. The choices over where to work, invest, raise a family, start or manage a business may not be confined by city borders anymore.”

“In the longer term, we hope to move towards a pan-GBA community, where businesses can operate, and individuals can live across the area, with the differences in lifestyle between the two sides of the border significantly reduced,” said Michael HO, Partner at Oliver Wyman.

Among the nine GBA cities in mainland China, Shenzhen is Hong Kong people’ most preferred destination. The main reasons people gave for selecting a specific location as their preferred destination were its better living environment, industry prospects, and local economic development.

As much has already been invested in transport links, 63% of respondents would prefer commuting between Hong Kong and GBA cities in mainland China to living in the mainland full time. Most (43%) would prefer to commute once or twice a month, suggesting they would require accommodation on both sides of the border.

Increased GBA people mobility can unlock new opportunities for the financial services industry. Among those interested in GBA opportunities in mainland China, more than 80% are considering buying properties and more than 85% interested in cross-border medical insurance policies, while 70% have a mainland bank account.

Of those who have yet to open a mainland bank account, 53% said they had no immediate need for such a mainland account as they had yet to move or start commuting cross border, while more than 20% said the current account opening process is labourious or unclear.

Meanwhile their servicing needs will also be more complex – up to 60% respondents are planning to hold financial assets both in Hong Kong and mainland China.

CHAN added: “Increasingly more people are expecting seamless solutions across payment, financing, wealth management and insurance from their financial service providers. In time, harmonisation of policies and regulatory framework across jurisdictions will give new impetus to innovation in products and services, enabling banks to provide best in class financial solutions to GBA people.”

Among the respondents who are not interested in GBA opportunities in mainland China, the top concern is the living environment.  Eligibility for social security services is another concern, along with healthcare service quality.

The report also points out the need for further policy reforms and infrastructure development to facilitate a seamless GBA lifestyle in the longer run, from improving health and pension schemes, deepening mutual recognition of professional services to supporting a cross-border commuter lifestyle.

Oliver Wyman Partner Ben SIMPFENDORFER said: “The Greater Bay Area is positioned as a world-class commercial and innovation powerhouse. Progress so far in achieving this goal is encouraging. Now, we see the next phase in the region’s development as offering an opportunity to reset and refresh its approach to people mobility, which cannot be achieved without the joint efforts of the public and private sectors.”

Three thousand Hong Kong permanent residents were surveyed for this report, in addition to interviews with business leaders, entrepreneurs, youth leaders, think tanks and academics. Respondents of the survey, conducted in early 2022, were primarily tertiary-educated and aged between 18 and 44.

Notes to editors:

The Hongkong and Shanghai Banking Corporation Limited
The Hongkong and Shanghai Banking Corporation Limited is the founding member of the HSBC Group. HSBC serves customers worldwide from offices in 64 countries and territories in its geographical regions: Europe, Asia, North America, Latin America, and Middle East and North Africa. With assets of USD3,022 billion at 31 March 2022, HSBC is one of the largest banking and financial services organisations in the world.

About Oliver Wyman
Oliver Wyman is a global leader in management consulting. With offices in more than 70 cities across 30 countries, Oliver Wyman combines deep industry knowledge with specialized expertise in strategy, operations, risk management, and organization transformation. The firm has more than 5,700 professionals around the world who work with clients to optimize their business, improve their operations and risk profile, and accelerate their organizational performance to seize the most attractive opportunities. Oliver Wyman is a business of Marsh McLennan [NYSE: MMC]. For more information, visit www.oliverwyman.com.