6 Things to Know about Hong Kong business culture

When your company is new to the crowd, it's always a good idea to be familiar with the customs and societal norms of that unknown place. Understanding the generally accepted behaviors and avoiding those that can be seen as ignorant or even offensive as a new joiner or expat can be even more important in a new environment, because those relationships can become useful connections in your later growth path.

If you are about to start a new company, knowing these facts about work culture in Hong Kong is useful to hire talented people, and grow your business here.

Hong Kong is a prime destination in Asia for investors

What is Hong Kong business culture ?

Hong Kong business culture, also known as Hong Kong business etiquette, is the set of beliefs, values, and behaviors shared by the majority of employees in Hong Kong. This definition can be used in other business environments. This develops over time as a result of interactions at the employee, managerial, departmental, organizational, regional, and even national levels. Positive and toxic work cultures are established at all of these levels, with the effects reverberating to the other levels.

It is also critical for you to understand the elements of work culture, as they can have a significant impact on how it appears in the trickle-down. Here are a few interesting facts about Hong Kong business culture to help you establish strong business relationships, communicate effectively with new partners.

1. Flexible working laws & regulations

Working laws in Hong Kong, such as probation, resignation notice, and termination notice period, are quite flexible. There is no standard probation period, and it can range from 1 to 6 months, depending on the negotiation, job type, and company. There are also few guidelines for resignation and termination notice periods. The notice period is usually mutually agreed upon in the contract terms, but it must be at least 7 days.

2. Strong hierarchical structures

While Hong Kong is a mix of East and West cultures, the adherence to hierarchies based on position and age established by Hong Kong's Chinese culture persists. Hierarchical structures are strong in work culture in Hong Kong. While all employees' ideas are valued, senior management (which can also mean the eldest associate in some cases) is most highly respected, leads meetings, and is the first to be acknowledged in both greeting and departing.

Understanding Hong Kong business etiquetteis a key to success

3. Dress code

Another fact in Hong Kong business culture is the office dress code. It is often conservative, with an emphasis on cleanliness and appearance. Subtle accessorizing, such as a branded watch, is noticed and appreciated. Certain industries (such as marketing and fashion) and co-working spaces have more relaxed dress codes.

Men are expected to dress formally in a formal shirt, tie, and trousers, with or without a suit jacket, as part of Hong Kong business culture. Women typically dress modestly in dresses, blouses, and skirts. Color is another consideration in the Hong Kong formal dress code. Red is a lucky color that is welcomed during the holiday season and Chinese festivals. White shirts with black suits and dresses are popular in Hong Kong workplace.

4. Giving gifts

Unlike in mainland China, giving gifts is not regular in Hong Kong business etiquette. However, if you want to send a gift to your partners as part of your gratitude, you should consider the cost of the gift given to them. The packaging should be attractive and clearly display the item's brand name, as this is an important indicator of how much it costs.

Monetary value is unquestionably something that the giftee uses to assess the worth of their gift, which for them reflects the value you place on the relationship. Giftees will initially refuse the gift, but it is expected that the gifter will persist in bestowing the gift, and the giftee will eventually accept.

5. Exchanging name cards

To show respect, exchange business cards at the start of meetings. The attention and respect you show someone's name card is interpreted in Hong Kong business etiquette as an indication of the respect you will show to partners. To receive a business card, use both hands or just the right hand.

Do not discard the card right away; instead, examine it carefully and place it on the table in front of you until everyone is seated. Do not put it in the back pocket of your pants, as this may be misinterpreted as you sitting on their face. Similarly, unless directed otherwise, do not fold or write on the card.

Be respectful when exchanging name card to your partners

6. Long-term business relationships

Hong Kong business people prefer to approach long-term relationships to short-term ones, and as a result, they frequently want to learn a lot about their partners in order to build the trust and loyalty required to support business in the future. Many of the questions may seem irrelevant to the topic at hand, but try to be patient and provide answers for the sake of the business relationship. Introductions from a reliable third party are almost always required when starting a business relationship.

One interesting fact in Hong Kong business culture is that they are very sharp in doing business; they understand the economy's efficiency and are thus only interested in judging a deal's bottom line. Information embellishment and padding are considered counterproductive and will be rejected. They want factual and concise information. You will gain their trust and respect if you are straightforward and clear about your primary objectives.

Conclusion

While work culture in Hong Kong has adopted more Western cultures than traditional Chinese values. While proper etiquette is important, showing willingness to learn and openness to the local culture is even more important, no matter where you are.