by JIANG Yiman

Global companies and institutional investors are stepping up plans to expand cross-border trade and investment, with mainland China emerging as the most important market, a survey by HSBC showed.

About 93% of respondents said they plan to increase cross-border activity over the next five years. Mainland China ranked as the top target, with 41% expecting its importance to grow — the highest among all markets surveyed.

Access to technology, particularly artificial intelligence, is now the main driver of global expansion. Around 50% of companies cited the availability of AI and related infrastructure as the key factor shaping global expansion plans over the next three years, slightly ahead of market growth potential and customer demand at 49%.

Confidence in global growth remains strong despite uncertainty. Some 94% of respondents see continued cross-border growth opportunities, rising to 99% among mainland Chinese firms. For these companies, Europe (52%) and the Hong Kong market (43%) are expected to gain importance.

Mainland firms are also increasing capital deployment. About 96% said they are boosting investment in high-growth markets, reflecting confidence in long-term returns.

Technology and cost considerations are central to investment decisions. Among mainland respondents, 54% cited strong AI and data infrastructure and competitive energy costs as the top factors when entering new markets, ahead of trade and investment conditions (51%).

AI is expected to deliver productivity gains. Some 57% of mainland firms see improved efficiency as the main benefit, followed by innovation and competitiveness (both 45%). About 37% expect AI to reshape core business models within three years.

Institutional investors are also shifting portfolios. Nearly 49% of global respondents said increasing exposure to AI and technology is their most common strategy this year, rising to 58% in mainland China.

Market volatility is now viewed as structural. About 97% of mainland firms said they have adjusted capital allocation strategies, compared with 88% globally.

The survey, conducted in March, covered 3,000 companies and investors across 10 markets, including 300 in mainland China.