Hong Kong business is expected to face increased pressure as a result of pessimism over the state of the global economy, a survey conducted by Deloitte China and supported by CPA Australia, has revealed.

This uncertainty is expected to take its toll on corporate profits but participants do not believe the economic impact will be as bad as the losses suffered by Hong Kong companies during the outbreak of SARS in 2002/2003 or the Global Financial Crisis of 2008/2009.

The survey was completed by over 200 participants from Hong Kong’s banking sector, clients of Deloitte and some members of professional accounting body, CPA Australia, over a two-month period from August and September of this year. This is the fourth survey conducted by Deloitte China with the support of CPA Australia.

According to the results, 54 percent of respondents forecast the U.S. economy to weaken in the next 12 months while 68 percent believe the economies of Portugal, Italy, Ireland, Greece and Spain (PIIGS) will further deteriorate over the next 12 months.

As for Hong Kong, the survey gauged respondents' expectations on several key economic indicators such as the Hang Seng Index (HSI), property prices, corporate profitability and the number of winding-up orders. Respondents were mixed about the performance of the HSI as 47 percent forecast it would close between 20,001 and 25,000 points at the end of February 2012 while 44 percent said it would reach between 15,000 and 20,000 points. Almost 60 percent of those surveyed expect residential property prices to drop over the next 12 months.