Less Hong Kong SMEs find credit approval more difficult in Q2

But more SMEs now find securing debt “easier” as well.

Whilst over 1 in 4 (27%) small and medium-sized enterprises (SMEs) in Hong Kong still said that getting credit approval was “more difficult” in Q2, more SMEs are found to be securing loans much easier.

Almost 3 in 4 (73%) of SMEs polled said that credit approval stances in Q2 were similar or easier compared to the previous quarter, according to data from the Hong Kong Monetary Authority (HKMA). This is higher than the 71% recorded in Q1.

The remaining 27% perceived a “more difficult” credit approval stance, improving from the 29% who said the same in Q1.

Of the SMEs polled, only 13% have existing credit lines in Hong Kong. HKMA said that it excluded respondents who answered “no idea/ don’t know” in its analysis. 

Amongst respondents with existing loans, 2% reported “tighter” credit standards from banks, significantly improving from 12% in Q1. 

About 2% of the respondents applied for new bank credit in Q2. Of these, 70% reported fully or partially successful applications, a drop from the 86% in Q1.