Darius Baruar
May 6, 2025 02:33
According to a survey by the Hong Kong monetary authorities, stable credit conditions for SMEs in the first quarter of 2025 were revealed, and the recognition of credit approval was slightly improved.
HKMA (Hong Kong Monetary Authority) recently published a survey on SMES credit conditions in the first quarter of 2025. According to this survey, the credit conditions for SMEs have been stably maintained by reflecting Hong Kong’s steady economic environment.
Credit approval recognition
According to a survey, 75%of the notable SMEs have recognized the “similar” or “easy” credit approval posture compared to six months ago, which increased in 70%of the previous quarter. On the contrary, 25%of the respondents thought that the credit approval posture was “more difficult and decreased from 30%of the previous quarter. This perception is not directly related to actual credit difficulties, but it can be influenced by various external factors such as media reports and extensive economic situations.
Existing credit lines and new applications
The survey also explored the existing credit line among SMEs, and 5%of the respondents pointed out the “stricter” position. This reinforcement may include measures such as a reduction in credit limit or interest rate hikes, but it does not necessarily reflect the decrease in credit supply.
Regarding a new credit application, 3%of SMEs in responding to the survey applied for new bank credit, 79%of this application was completely or partially successful, and slightly increased from 77%of the previous quarter. However, small samples of SMEs that apply for new credit can cause significant changes in these results.
Survey background and importance
HKMA has been conducting a quarterly survey since 2016 in cooperation with the Hong Kong Productivity Council (HKPC). This provides an important insight into the perspective of the demand side of SMEs, including about 2,500 SMEs in various sectors. Given the central role of SMEs in the Hong Kong economy, the survey results are useful tools for monitoring funding access and identifying potential tasks.
The survey provides insights on the credit conditions of SMEs, but it is essential to interpret the results. As with all opinion surveys, data can be influenced by temporary emotion shifts due to certain events during the survey period. Therefore, the result should be considered with other economic indicators for a comprehensive understanding.
For more information and technical information, readers can visit HKPC’s official publication site.
Overall results and additional information on the survey can be found on the Hong Kong Monetary Authority website.
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