Doing Business in Hong Kong | Navigating Business Culture

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Hong Kong, an impressive metropolis, is a special administrative region of the People’s Republic of China, located off the south coast of mainland China, east of The Pearl River and surrounded by the South China Sea. The region consists of Hong Kong Island, the southern part of Kowloon Peninsula and Stonecutters Island, and The New Territories.

Hong Kong is a densely populated area and has been a popular destination for expats for many years due to the region’s importance in global trade and strong links with the western world dating back to its time under British rule.

In 1997 Hong Kong was officially handed back to the People’s Republic of China from the UK. Although Hong Kong continues to operate under the ‘one country, two systems’ framework, the introduction of the National Security Law in 2020 has led to greater alignment with mainland China’s political and legal systems, influencing business practices and social freedoms.

The majority of the people living in Hong Kong speak Cantonese, a form of Chinese more traditional than Mandarin which dominates mainland China. Due to the influence of being under British rule for over 150 years, English is widely spoken and accepted throughout the region. There is a small but notable population from Southeast Asia, in particular Indonesia and The Philippines, who speak their native languages.

Hong Kong was the first of the four ‘Asian Tigers’ to develop, doing so in the 1950s and 1960s, initially developing as a manufacturing base. Today, Hong Kong is a global financial centre and a hub for professional services, trade, logistics, and tourism. Manufacturing has declined, but the region remains a critical gateway for foreign investment into mainland China.

The fast-paced environment and drive for success has led to a long working hours culture and a struggle to achieve work-life balance. However, a shift in attitudes is underway, with advancements in technology and the changing expectations of younger generations leading companies to adopt practices that prioritise employee well-being.

The traditional Chinese cultural values deeply rooted in Hong Kong’s society have also influenced its work culture. Confucian principles, such as respect for authority, filial piety, and the importance of maintaining harmonious relationships, play a significant role. The concept of “guanxi,” the practice of building and nurturing social networks and relationships, is highly valued in the business context. The emphasis on guanxi contributes to the formation of trust, collaboration, and long-term partnerships in Hong Kong’s work environment.

Decisions are typically made top-down following team discussions. Decisions are made quite quickly, due to Hong Kongers preference for efficiency, however negotiation can be slower and prolonged due to attention given to small details.

It is considered rude to publicly challenge or disagree with the instruction of a manager, criticism should only be made through a third-person or privately. Managers are expected to treat their subordinates equally but are still considered more autocratic than elsewhere.

Hong Kongers tend to communicate more directly than in other parts of Asia, but recent political changes have made public expressions of dissent or disagreement more restrained. It is not recommended to raise matters in small talk like politics with China or the view of Hong Kong’s position. To maintain harmony, conversations tend to be more ambiguous and not confrontational. It is therefore important to include open ended questions several times in order to gain clarification when speaking with a Hong Konger.

The importance of saving ‘face’ also means that a Hong Konger will rarely give a simple ‘no’ or negative response. When speaking with a Hong Konger be mindful to listen closely to the tone of voice to gain an indication of what they really think. It’s also important to remember to pause before speaking to indicate that thought has been put in before an answer is given, silence is quite purposeful in communication with Hong Kongers.

In meetings high importance is placed on punctuality. It is better to be a little early than a second late. It is expected of you to greet everyone in the meeting individually, even if the attendance is large. This ties in with the expectation of social talk at the beginning of the meeting before bringing up business matters.

Avoid showing outward signs of frustration or impatience as Hong Kong businesses place importance of keeping face even in tough times. They also place importance on efficiency, as they tend to focus much on bottom-line results. Focus on presenting information in as clear and concise a manner as possible, adding little to no embellishments or excessive details.

While business cards have largely disappeared in the West, they remain a very important greeting and protocol tool in Hong Kong and a plentiful supply should be carried on a visit.  Cards do not need to have Chinese translation into character form on the reverse, but this is increasingly important and should be considered if regular visits are planned.  Ensure a validation check is undertaken of the translation of a Western name and job title.

As a status conscious society, a person tends to be addressed using their profession, such as “Doctor XXX” or “Director XXX”. Otherwise, using the English “Mr/Mrs/Miss” before the family name is acceptable.

There is no expectation for someone to always show verbal gratitude for minor curtseys, such as saying “thank you” when holding a door open for someone, instead a simple nod or smile is sufficient for Hong Kongers.

Gift-giving is not as integral to business culture as in mainland China and is only relevant in small family or local businesses particularly when meeting the principal or senior management. Appropriate small gifts for your host include sweets, fruits and flowers (but never white or red flowers), and remember to give them using both hands. Receiving gifts should also be done using both hands and not one.

Due to being in such a densely populated region, Hong Kongers are accustomed to bumping into one another and others accidently invading their personal space, however public affection is highly uncommon and can be frowned upon by the elder population. Although it is acceptable for those of the same gender to hold hands in a sign of friendship.

Do not point at someone or something with your index finger, instead use you open hand to indicate. It’s also considered bad manners to sit crossed legged and to touch someone’s head without permission.