What do you need to know about Hong Kong business culture?
Hong Kong is dominated by the Chinese, making Cantonese and English the two desired languages for spoken and written business means. The people of Hong Kong are typically Asian in nature but due to exposure to other cultures during business or travel trips, they are aware of cultural differences. Yet, it would be preferable to brush up the basics regarding expected etiquette to ensure your business meetings go as planned.
Hong Kong business culture tips
- Schedule appointments 2 to 3 weeks in advance. Inform them of who all will be attending with their names, titles, designations and function at the meeting.
- Red is considered lucky so include some red in your attire; it’ll work well for you
- Be on time
- A handshake with a slight bow is the accepted form of greeting from a foreigner
- Use titles when addressing your Hong Kong counterparts
- They may stand closer to you than you’re used to. Don’t be alarmed!
What are negotiation tactics in Hong Kong?
- Work on building a relationship before you present the business proposal
- Go with a team rather than alone
- Maintain harmony and positivity at all times
- Be modest and if you’re praised, be humble about it
- Give respect to elders
- Check whether an interpreter is required prior to the meeting
- They will be no direct refusals on any matter, and you are expected to do the same; never deliver bad news directly
- Be patient with if they answer their phones while speaking to you. It’s not considered rude to them.
- Be prepared for clever negotiation tactics from their side.
- Make your presentations in black and white as each color represents something.
How much is the contract worth in Hong Kong?
It is preferable to sign a written contract rather than relying on a verbal one before initiating any project. Use the local lawyer to help you understand the clauses expressed by other side and to put yours down. Understand the contract thoroughly before signing. You are permitted to take your time on getting back but don’t delay too long. Pushing you to sign quickly could be a tactic to get you to agree to certain terms.
What are pricing policy, pressure and restraints in Hong Kong?
There are many factors affecting pricing decisions in Hong Kong. To have an effective pricing strategy, you need to take into consideration fundamental factors such as government policies, exchange rate, competition, and so on.
What is Hong Kong legal system?
Hong Kong’s legal system is comprised of the Basic Law, Common Law, Rules of Equity, and Statute Law.
What is the arbitration and litigation in Hong Kong?
Hong Kong has one of the top arbitration centres in the world, equipped with up to date infrastructure, excellent transport facilities and an effective procedure for arbitration. The centre is also capable of handling international disputes in the area of finance, law and commercial business.
There are, however, certain cases which are required to go through the traditional litigation process. These include:
- Actions against ships
- Criminal Cases
- Competition and anti-trust disputes
- Disputes related to intellectual property
- Matters reserved to resolution by state agencies and tribunals (e.g.: immigration, taxation or national welfare entitlements)
Hong Kong is a well known and trusted name in the global business scenario. Its people are well versed with other cultures, and its trade procedures are smooth and efficient. To expand to Hong Kong, it is advisable to research thoroughly, understand the culture, legal system, and necessary procedures to optimise the outcomes of your strategy.