Credit access remains stable for SMEs in Q1

Credit approval eased or remained unchanged for SMEs.

In Hong Kong, 75% of small and medium-sized enterprises (SMEs) perceived a "similar" or "easier" credit approval stance in Q1, rising 5% quarter-on-quarter (QoQ), the Hong Kong Monetary Authority (HKMA) reported.

Meanwhile, 25% found it “more difficult” to obtain credit approval. According to the HKMA, this perception may be influenced by external factors such as media reports, business conditions, and the opinions of relatives and friends.

Amongst existing credit line customers, 5% reported a "tighter" stance from banks, which may reflect measures such as reducing unused and used credit lines, raising interest rates, imposing additional collateral requirements, or shortening loan tenors.

During the same period, 3% applied for new bank credit. Of those who had already received their application outcomes, 79% reported fully or partially successful applications.

The HKMA has appointed the Hong Kong Productivity Council (HKPC) to conduct this survey on a quarterly basis, covering about 2,500 SMEs from various economic sectors each round.