April 2026 SME Business Sentiment Declines Amid Geopolitical Tensions, Outlook Shows Slight Improvement

Results of monthly survey on business situation of small and medium-sized enterprises for April 2026

The Census and Statistics Department (C&SD) released today (May 12) the results of the Monthly Survey on Business Situation of Small and Medium-sized Enterprises (SMEs) for April 2026.

The current diffusion index (DI) on business receipts amongst SMEs decreased from 44.3 in March 2026 in the contractionary zone to 44.0 in April 2026, whereas the one-month’s ahead (i.e. May 2026) outlook DI on business receipts was 47.5. Analysed by sector, the current DIs on business receipts for some surveyed sectors dropped in April 2026 as compared with previous month, particularly for the restaurants (from 40.6 to 38.1), import and export trades (from 46.3 to 45.4) and wholesale trade (from 42.2 to 41.3).

The current DI on new orders for the import and export trades decreased from 46.8 in March 2026 to 46.1 in April 2026, whereas the outlook DI on new orders in one month’s time (i.e. May 2026) was 47.9.

Commentary

A Government spokesman said that business sentiment amongst SMEs was still cautious in April amid the ongoing geopolitical tensions in the Middle East, but the situation stabilised somewhat. While the current diffusion index on business receipts for SMEs fell slightly from the preceding month, the outlook diffusion index rose back. Meanwhile, the overall employment situation remained generally steady.

Looking ahead, the evolving Middle East conflict remains a key source of uncertainty for local business sentiment, but sustained growth of the Hong Kong economy will provide support. The Government has taken targeted measures to ease the impact from high fuel costs and assist SMEs in navigating the fast-changing market environment, and will continue to closely monitor the situation.

Further information

The Monthly Survey on Business Situation of Small and Medium-sized Enterprises aims to provide a quick reference, with minimum time lag, for assessing the short-term business situation faced by SMEs. SMEs covered in this survey refer to companies with fewer than 50 persons engaged. Respondents were asked to exclude seasonal fluctuations in reporting their views. Based on the views collected from the survey, a set of diffusion indices (including current and outlook diffusion indices) is compiled. A reading above 50 indicates that the business condition is generally favourable, whereas that below 50 indicates otherwise. As for statistics on the business prospects of prominent companies in Hong Kong, users may refer to the publication entitled "Report on Quarterly Business Tendency Survey" released by the C&SD.

The results of the survey should be interpreted with care. The survey solicits feedback from a panel sample of about 600 SMEs each month and the survey findings are thus subject to sample size constraint. Views collected from the survey refer only to those of respondents on their own companies rather than those on the respective sectors they are engaged in. Besides, in this type of opinion survey on expected business situation, the views collected in the survey are affected by the events in the community occurring around the time of enumeration, and it is difficult to establish precisely the extent to which respondents' perception of the business situation accords with the underlying trends. For this survey, main bulk of the data were collected around the last week of the reference month.

More detailed statistics are given in the "Report on Monthly Survey on the Business Situation of Small and Medium-sized Enterprises". Users can browse and download the publication at the website of the C&SD (www.censtatd.gov.hk/en/EIndexbySubject.html?pcode=B1080015&scode=300).

Users who have enquiries about the survey results may contact Industrial Production Statistics Section of the C&SD (Tel: 3903 7246; email: sme-survey@censtatd.gov.hk).

Source: AI-found images

Hong Kong Customs detects case of non-registered precious metals and stones dealer carrying out specified transactions

Hong Kong Customs yesterday (May 11) detected a case involving a local company that conducted transactions of diamonds valued at over HK$120,000, without registration under the Dealers in Precious Metals and Stones Regulatory Regime. The investigation is ongoing.

According to the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615), unless exempted, any person who is seeking to carry on a business of dealing in precious metals and stones and engage in any transaction(s) (whether making or receiving a payment) with a total value at or above HK$120,000 in Hong Kong is required to register with Hong Kong Customs. Any dealer, other than a registrant, who claims to be a registrant, claims to be authorised to carry out, or carries out any cash or non-cash transaction(s) with a total value at or above HK$120,000 is liable to a maximum fine of HK$100,000 and imprisonment for six months upon conviction.

Customs reminds dealers in precious metals and stones that they must obtain the relevant registration before they can carry out any cash or non-cash transaction(s) with a total value at or above HK$120,000.

For the forms, procedures and guidelines to submit applications for registration, please visit the website for Dealers in Precious Metals and Stones Registration System (www.drs.customs.gov.hk) or Customs' webpage (www.customs.gov.hk/en/service-enforcement-information/anti-money-laundering/supervision-of-dealers-in-precious-metals-and-ston/index.html).

Members of the public may report any suspected transactions involving precious metals and stones with a total value at or above HK$120,000 conducted without the required registration to Customs' 24-hour hotline 182 8080 or its dedicated crime-reporting email account (crimereport@customs.gov.hk) or online form (eform.cefs.gov.hk/form/ced002).

Hong Kong Customs, Photo source: reference image