In this undated photo, the Chinese national flags and flags of the Hong Kong SAR flutter in Hong Kong. (PHOTO / XINHUA)

According to a recent survey by the American Chamber of Commerce in Hong Kong, 73 percent of members interviewed have confidence in Hong Kong’s rule of law, of whom 29 percent are “very confident and confident” and 44 percent are “generally confident”.

More than 60 percent of the respondents said the implementation of the National Security Law has had no negative impact on their companies’ operations in Hong Kong. 

Respondents’ outlook for Hong Kong over the next 12 months has improved from 2022, with 48 percent saying their outlook was optimistic, while the proportion of those who were pessimistic declined from 23 percent in 2022 to 14 percent this year

Of those who thought it has had an impact, 68 percent said it has been indirect while 23 percent said it has been direct, involving challenges such as the departure of employees and changes of headquarters. 

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The survey also showed that business sentiment toward Hong Kong has risen. According to the survey, 34 percent of respondents said Hong Kong is more welcoming to foreign investment than it was last year, an increase of 27 percentage points from 2022. 

Also, 66 percent of respondents said the Hong Kong government is responsive to business concerns and opportunities, up 25 percentage points from last year. 

Those who said the Hong Kong government is not concerned about or rejects business demands dropped to 33 percent from 59 percent last year.

Respondents’ outlook for Hong Kong over the next 12 months has improved from 2022, with 48 percent saying their outlook was optimistic, while the proportion of those who were pessimistic declined from 23 percent in 2022 to 14 percent this year. 

More than half of surveyed members said Hong Kong would continue to be their global or regional headquarters. 

American Chamber of Commerce president Eden Woon Yi-teng said the survey results showed that members surveyed were cautiously optimistic about their business prospects in the coming year, making them more inclined to stay in Hong Kong. 

Members also generally agreed that Hong Kong remains competitive as an international hub, Woon added. 

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However, over 80 percent of respondents said their companies’ operations were affected by tensions in US-China relations over the past three years, and nearly 60 percent of them said the instability this presented to their business prospects most affected their companies’ operations.

In addition, 29 percent of members surveyed said US sanctions on some Hong Kong officials affected their companies’ operations in the city. 

The survey was conducted between Jan 16 and Feb 26 this year. About 10 percent of the 1,300 members of AmCham Hong Kong responded to the survey. 

contact the writer at evanliu@chinadailyhk.com