Hong Kong businesses are preparing to expand and hire more employees next year amid expectations of higher revenues in a recovering economy, according to a survey by a professional accounting body.

More than half of Hong Kong-based executives, accountants and other financial professionals expect their companies’ revenue to increase next year, and hiring intentions have reached their highest level since 2020, a CPA Australia said on Thursday.

This optimism is based on a positive outlook for the city’s economy, with 63 percent of respondents expecting growth in the coming year, according to a survey of 568 executives conducted in October and November. Hong Kong’s lenient tax system was seen as “the biggest positive contributor” to the economic and business environment, while the first US rate cut in four years in September also contributed. Weakening consumer demand and tensions between the United States and China emerged as the two biggest challenges.

“The survey results show that Hong Kong’s economy and business confidence are expected to improve steadily in the coming year,” said Cliff Ip Wang-hoi, president of CPA Australia. “Recent stimulus measures unveiled by the central government and the Hong Kong government have contributed to this improvement in sentiment. The start of the rate reduction cycle has also boosted business confidence.

The city is also reportedly working on a plan to exempt investment institutions and high-net-worth individuals from paying taxes on gains from cryptocurrencies and other alternative assets, as Hong Kong strives to maintain its status a world-leading financial center.