Doing Business in Hong Kong

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Hong Kong's economy is respected and, by some measures, one of the most open and transparent in the world, and expats find doing business in the city-state easy and painless.

Hong Kong's status as a Chinese Special Administrative Region operating on the principle of "one country, two systems" means that it is a world apart from mainland China. This is seen in the local government's respect for private property and personal freedom and its emphasis on non-intervention in the private sphere.

It is hardly surprising that the region is a key financial hub in Asia, acting as a point where Eastern and Western business interests intersect. It remains a key business destination and a magnet for global capital and multinational businesses. Although this Asian economic tiger may seem familiar in certain ways, expats should know about the nuances of doing business in Hong Kong if they want to be truly successful and respected in their new business environment.

Fast facts

Business hours

Official hours are usually Monday to Friday 9am to 6pm, sometimes with a half-day on Saturdays from 9am to 1pm. However, workers, especially those in senior positions, may often be expected to work beyond these hours.

Business language

Cantonese, Mandarin, and English. The larger the company one deals with, the more likely that English is spoken.

Dress

Conservative dark suits are the usual business attire.

Gifts

Gifts are expected to be reciprocated and should be given and received with both hands. Those who give gifts should note they are not opened in the giver's presence.

Gender equality

Women play a significant role in business, but expats may still notice that male colleagues are deferred to in business meetings.

Business culture in Hong Kong

The business culture in Hong Kong tends to be conservative. Business people are expected to dress in formal suits and conduct themselves professionally at all times. Punctuality, mutual respect, and deference to seniority are all valued principles that are widely practised.

Saving face

The Asian concept of 'saving face' applies in Hong Kong, so expats should avoid embarrassing, confronting or contradicting business associates at all costs. Bad news should never be presented in the company of others. Containing emotions is also essential, as anyone who openly displays anger or irritation is likely to make a bad impression, causing the person losing their temper and those around them to lose face as well.

Greetings

Although a bow is appropriate if no handshake is offered, Westerners aren't necessarily expected to bow when greeting local associates. It should be noted that handshakes in Hong Kong may not be as firm as expats might be used to. Associates may avert their eyes when greeting as a sign of respect, and while this won't necessarily be expected from an expat, it is a good idea not to hold another person's gaze too strongly. Similarly, a moderate amount of eye contact is suggested during conversations.

Communication

Expats should pay close attention to their choice of words and how they are conveyed. Using confrontational or vulgar language, especially expletives, is a sure way to lose face. Poor choice of words, or even tone, can be enough to sever a relationship with a business. It may not be evident then, but the message will become clear as future efforts to meet or do business are continuously deflected.

On another note, while physical contact, especially between people of the same gender, may be fairly common in a social setting with friends, it should not extend beyond a handshake in business settings – most locals dislike being touched by strangers. At the same time, people in Hong Kong might hold conversations at a much closer distance than some expats are used to.

Meetings

Expats in Hong Kong should expect small talk at the start of meetings before the conversation turns to business. Similarly, business negotiations will move slowly, which should be respected.

That said, expats can expect to be invited to social occasions by their business associates. These should always be accepted as personal relationships are valued and these events, usually lunch or dinner, are a good way to build business connections.

Attitude towards foreigners

Hong Kong is one of the world’s most international cities, and expats are integral to its economy. Foreigners are unlikely to experience prejudice or hostility, although observing cultural etiquette is vital in ensuring equitable treatment.

Dos and don’ts of business in Hong Kong

Do make casual conversation, but not about personal, financial or political matters
Don't expect to get any business done over Chinese New Year
Do get a Chinese-language version of your business details printed on the reverse side of your card
Do have business documents printed in both English and Chinese

What do expats say about the business culture in Hong Kong?
"Hong Kong has a reputation for being the city where you can do anything. Many people come here solely to set up a business that would be too risky back home." Read more about Lisa's expat experience in Hong Kong.
"Efficiency and speed are key in doing business in Hong Kong. Paperwork is not heavy here and processes for obtaining any permit or licence is simple as well. The whole environment in this city is to encourage people to pursue an entrepreneurial approach." Learn about Edouard's expat experience in Hong Kong.

Are you an expat living in Hong Kong?

Expat Arrivals is looking for locals to contribute to this guide, and answer forum questions from others planning their move to Hong Kong. Please contact us if you'd like to contribute.