Elise Choi
Friday, July 18, 2014
The investment appetite of local businessmen will be affected by Occupy Central as they are fed up with political issues, the Chinese Manufacturers' Association said.
CMA president Irons Sze Wing-wai said yesterday businessmen feel it is "a waste to spend too much time and effort on political issues such as Occupy Central."
Sze said he has also heard there are some corporations that have boosted their investments overseas due to the political environment.
Manufacturers operating in the Pearl River Delta have turned more prudent on their business outlook, an association survey found.
The poll was conducted in March and April and questioned 274 members, about half of them operating in the delta.
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The other top reasons are rising labor costs, shortage of workers and the fluctuation of the yuan.
Sze also believes more manufacturers will move inland due to the anti- Chinese sentiment in Vietnam.
He said the mainland producer price index is alarming as it has been declining for the past 27 months.
There has been an excess capacity in manufacturing for more than two years since the central government injected money into manufacturers when the financial tsunami hit.
But Sze said banks have been tightening their loan payouts gradually.
Also, 53 percent said they are keen on expanding their businesses in the mainland market, particularly in the eastern and northern regions.
About 49 percent of members' businesses focus on Asia, while the European and US markets combine for 48 percent.
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