Experts believe Hong Kong stands a chance to fly with the tailwind generated by Western companies shifting their focus overseas as well as the wave of mainland enterprises "going global". Parker Zheng / China Daily

Editor's note: Despite the mounting threat from regional jurisdictions, international corporations still bank on Hong Kong as the gateway for their Asia-Pacific operations and as the stepping stone for expansion on the Chinese mainland and worldwide. They have every faith in the SAR being able to retain its regional trading crown whatever the obstacles.

Having landed in Asia decades ago, Netherlands-based consumer electronics group S.T.I. Electronics Ltd continues to bank on Hong Kong as the region's first and only sourcing, manufacturing and sales base to bridgehead its Asian and global businesses.

International corporations have tied the city's unique assets to its strategic geographical location, allowing the SAR to cling to its regional trading-hub status for years, accentuated by a sophisticated services sector and a myriad of efficacious fundamentals.

Yet, uncertainties remain with the city besieged by relentless competition from regional economies, notably Shanghai and Singapore, and a growing trend known as "trade disintermediation".

"But, there's only Hong Kong because it's where it is geographically," says Bert Peels, chief executive officer of S.T.I. Electronics (formerly known by its brand name LENCO).

Faced with mounting competition from other regional jurisdictions, he notes that Hong Kong has been betting on its future on what's going on across the border - the Chinese mainland - where rising costs have also led to a challenging business environment, with wages in Shenzhen having risen by nearly 20 percent last year alone.

"It's not easy for Hong Kong to retain its crown as the region's trading hub," Peels argues.

Hong Kong's visible trade last year, including re-exports, domestic exports and imports of goods, came to $8.4 trillion - almost four times the city's GDP - figures from the 2015-16 Budget show.

The import-and-export trading sector and the wholesale industry, boasts nearly half-a-million employees - the largest work group for any sector in Hong Kong - with more than 7,500 overseas and mainland enterprises having offices in the city, about half of which are corporations' regional headquarters or offices.