Hong Kong Monetary Authority: Credit conditions for Hong Kong SMEs were generally stable in the first quarter

Zhitong Finance App learned that on May 6, the Hong Kong Monetary Authority (HKMA) today announced the results of the “SME Loan Status Survey” for the first quarter of 2025. According to the survey, the credit situation of SMEs in Hong Kong is generally stable. Regarding the perception of SME's approach to bank loan approval (that is, how easy it is), excluding respondents who answered “no comments/I don't know”, 75% thought that the bank's approach to loan approval in the first quarter of 2025 was “no different” or “easier” than six months ago, up from 70% in the previous quarter. 25% thought the bank's response was “difficult,” compared to 30% in the previous quarter.

The perception that loans are difficult does not necessarily reflect that SMEs are experiencing substantial difficulties in borrowing, but can be influenced by many factors (such as media/news reports, business conditions, and opinions from family and friends).

Of the respondents who have been granted loans, 5% said that banks have “tightened” their loan policy, which is a slight increase from 0% in the previous quarter. In this survey, the meaning of loan tightening includes various possibilities, such as reducing backup credit amounts and loan amounts, increasing credit interest rates, increasing collateral requirements, or shortening loan terms. As a result, interviewees indicated that the bank's approach to its loans did not directly reflect the bank's actual investment in loans to SMEs.

The survey also collected the results of new SME loan applications. 3% of respondents said they had applied for a new loan from the bank in the first quarter of 2025. Of those with known application results, 79% said their application was completely successful or partially successful, up from 77% in the previous quarter.

Due to the small number of SMEs that have been approved for loans and SMEs that applied for new loans during the quarter, accounting for only 14% and 3% of the SMEs surveyed, the survey results are prone to large fluctuations, so care must be taken when interpreting.