62% of Hong Kong businesses unprepared for capital flow risks amid global trade tensions, rising costs and tech disruptions, Airwallex report finds

• Around 3 in 5 Hong Kong businesses are suffering from rising operational costs (59%) and margin erosion caused by foreign exchange (FX) fluctuations and global trade tensions (57%).

• Exports to Belt & Road markets are projected to rise to 48% from 38%, underscoring a growing urgency for cross-border finance solutions.

• While only 23% have adopted AI, these companies have reported a 52% ROI uplift, setting them apart from legacy competitors. 

• 86% of businesses using fintech solutions have indicated a very positive experience, compared to only 57% who rely on traditional banking systems say the same.

HONG KONG - Airwallex today launched its annual Future of Hong Kong Trade 2025 report, offering fresh insights into how Hong Kong corporates and SMEs are navigating financial pressures amid regional trade tensions, rising operational costs, and rapid technological change. Released at a time of heightened global FX volatility and shifting capital flows, the report reveals that the top challenges Hong Kong businesses are facing today are rising operation costs (59%) and margin erosion due to FX fluctuations (57%). In contrast, 62% have taken no action to address these risks.

Rising operational costs and cross-border finance challenges compound financial pressure

The sectors most affected by rising operation costs include: Technology & Electronics (68%), Health & Wellness (59%), and Timepieces & Watches (58%). 

In response, businesses are targeting reductions in supplier and manufacturing expenses (56%), followed closely by logistics, inventory and warehousing (55%). 

47% of Hong Kong businesses are also seeking to lower transaction and banking fees across domestic payment, cross-border payment, and foreign exchange, but the growing complexity of cross-border financial operations presents challenges:

• 68% struggle with cash flow management

• 53% face capital restrictions

• 48% are impacted by FX volatility and rising transaction costs

Over-reliance on US capital and idle cash reserves limits financial agility

The report also highlights that despite the growing awareness of currency risks, only 25% of Hong Kong businesses have taken steps to reduce their reliance on US capital.  The rest continue to depend heavily on USD funding, leaving them exposed to FX volatility and limiting financial flexibility.

Arnold Chan, APAC General Manager, Airwallex said, “Hong Kong businesses are facing deep financial uncertainty, but many remain passive when agility is most needed. Our data shows a clear gap between awareness and action — especially in managing FX risk, capital strategies, and idle liquidity. Businesses must act decisively to strengthen financial resilience and stay competitive in an increasingly volatile global economy.”

Amid these challenges, businesses are targeting expansion into emerging regional trade corridors. Exports to Belt & Road countries are projected to rise to 48% from 38%, while exports to Southeast Asia are expected to grow to 36% from 30% over the next 12 months. This trend is particularly strong across the following key sectors:

• Technology & Electronics: 53% (12% YoY growth) to Belt & Road countries, 37% (6% YoY growth) to Southeast Asia

• Jewellery: 59% (16%) YoY growth to Belt & Road countries, 41% (8% YoY growth) to Southeast Asia

• Timepieces & Watches: 48% (13% YoY growth) to Belt & Road countries, 33% (8% YoY growth) to Southeast Asia

There have been clear signs of progress, however, the majority (62%) of businesses remain passive, with no specific measures in place to mitigate US dollar volatility or capital flow risks. Additionally, 69% are holding idle cash reserves amid ongoing market uncertainty — an approach resulting in underutilised liquidity as well as missed opportunities to reinvest or strategically deploy capital to fuel growth.

“Cross-border eCommerce and new trade corridors, especially across ASEAN, are reshaping Hong Kong’s trade landscape. Fintech is a key driver of this shift, having become part of the essential infrastructure for modern trade, while also helping businesses to seize new opportunities. Businesses need to increase their awareness of digital financial solutions to reduce their risks and scale their operations, or risk being left behind. Airwallex’s latest report is a timely call to action for Hong Kong companies to accelerate their transformation and reinforce their role as global connectors,” said Patrick Yeung, CEO of The Hong Kong General Chamber of Commerce.

Untapped potential in AI and fintech among Hong Kong businesses

AI and fintech solutions are delivering measurable benefits to Hong Kong businesses but adoption rates remain low. Although only 23% of companies across sectors such as Technology, Electronics, Consumer Goods and Retail have adopted AI, those that have reported a 52% uplift in ROI. This growing need for speed, efficiency, and cost-effectiveness is prompting forward-thinking companies to move away from traditional banking systems like SWIFT towards modern fintech platforms that offer greater agility in cross-border operations.

Despite the clear benefits, adoption remains low, with the majority of businesses (81%) yet to implement any type of fintech solutions. Among those who have, satisfaction is high at 86%, driven by key benefits such as easier account opening (77%), lower cost (68%), and faster payment processing time (64%).

The contrast between low adoption and high satisfaction reveals a significant untapped opportunity. Businesses that embrace these technologies stand to gain a competitive edge — streamlining operations, reducing costs, and unlocking new growth in an increasingly digital global economy. Fintech adopters are also expanding their global reach, with projections showing they will sell to an average of 3.4 export markets over the next 12 months, compared to 3.05 for traditional bank users.

“AI and fintech are no longer emerging trends — they are proven tools for driving efficiency, reducing costs, and unlocking growth,” Chan added. “Yet only 1 in 5 Hong Kong businesses have adopted fintech solutions, despite satisfaction rates as high as 86%. With proven ROI and satisfaction from AI and fintech, this gap signals a clear opportunity: early adopters will be better equipped to navigate complexity and stay ahead. At Airwallex, we are committed to helping businesses make that leap by providing the infrastructure and insights needed to modernise financial operations and compete globally.”

The full report is available here.

END

Notes to editors

For media inquiries, please contact [email protected] 

About The Future of Hong Kong Trade 2025 Report

Airwallex’s The Future of Hong Kong Trade 2025 Report draws on research from 302 Hong Kong businesses across key sectors, examining FX exposure, capital strategies, and adoption of AI and FinTech solutions. The report provides actionable insights for businesses seeking to navigate market volatility and enhance operational efficiency, offering a comprehensive guide for corporates and SMEs to strengthen competitiveness and unlock growth in today’s dynamic financial landscape.

About Airwallex

Airwallex is a leading financial platform building the future of global banking for modern businesses. By combining proprietary infrastructure with software and AI, Airwallex is reimagining how businesses manage accounts, access capital, control spend, and embed financial services.

Designed to replace fragmented, legacy systems, Airwallex offers a unified platform for global financial operations - providing everything from multi-currency business accounts to payments to spend management and embedded financial products.

Founded in Melbourne and trusted by over 150,000 businesses worldwide - including TikTok, Rippling, Navan, Qantas, and SHEIN - Airwallex is powering a new era of global banking without borders.

Learn more at www.airwallex.com