The Hong Kong Monetary Authority published the results of its Survey on Small and Medium-Sized Enterprises’ Credit Conditions for the fourth quarter of 2024, reporting that SMEs’ credit conditions remained broadly stable. Excluding “no idea / don’t know” responses, 70% of SMEs perceived banks’ credit approval stance as “similar” or “easier” than six months earlier, down from 76% in the previous quarter, while 30% perceived it as “more difficult” (up from 24%). Among SMEs with existing credit lines, none reported a “tighter” stance (down from 1% previously). Only 4% of respondents applied for new bank credit during the quarter; of those with known outcomes, 77% reported applications that were fully or partially successful, compared with 79% in the previous quarter. The HKMA cautioned that results for SMEs with existing credit lines (26% of surveyed SMEs) and new applications (4%) may be prone to volatility due to small sample sizes. The quarterly survey, conducted by the Hong Kong Productivity Council since the third quarter of 2016, typically covers around 2,500 SMEs across sectors and is intended to help monitor access to bank credit from a demand-side perspective.
Hong Kong Monetary Authority 2025-02-03
Hong Kong Monetary Authority publishes Q4 2024 SME credit conditions survey showing broadly stable conditions
The Hong Kong Monetary Authority's Q4 2024 Survey on SMEs’ Credit Conditions indicates broadly stable credit conditions. While 70% of SMEs viewed banks' credit approval stance as "similar" or "easier" than six months prior, this is a decrease from 76% in the previous quarter. The survey, covering about 2,500 SMEs, highlights potential volatility due to small sample sizes for existing credit lines and new applications.