The Hong Kong Monetary Authority, together with 18 banks participating in the Taskforce on SME Lending, has introduced a new round of measures to support local small and medium-sized enterprises facing pressure from oil price volatility and wider global uncertainty. The package expands dedicated SME lending capacity, offers targeted credit relief for affected sectors, sets a standard timeline for applications under the SME Financing Guarantee Scheme, and adds more flexible loan structures for firms investing in business transformation. Dedicated funds earmarked for SMEs across participating banks have increased from HKD 370 billion in October 2024 to more than HKD 450 billion. Banks will offer accommodative relief, subject to prudent risk management and individual customer circumstances, to borrowers affected by oil price fluctuations, particularly in transport and logistics, manufacturing, and import and export. Measures include flexible repayment arrangements, loan tenor extensions and trade facility extensions. Under normal circumstances, participating banks and HKMC Insurance Limited will complete SME Financing Guarantee Scheme applications and inform applicants of the outcome within 30 business days after receiving all necessary information. Banks will also introduce customised repayment structures, such as partial principal repayment in the early stage or step-up schedules, to support business expansion and digital, intelligent and green upgrades. The package also deepens the use of fintech and data in SME lending. All major banks with material trade finance business will participate in the Hong Kong Monetary Authority's Cargo x Pilot Programme through the Commercial Data Interchange to improve credit assessment and speed trade finance for importers and exporters. Since 2024, three rounds of SME support measures have covered more than 89,000 cases involving aggregate credit limits of over HKD 209 billion, and the Hong Kong Monetary Authority and the banking sector will continue to monitor conditions and engage with the commercial sector through the taskforce.
Hong Kong Monetary Authority 2026-04-29
Hong Kong Monetary Authority launches new SME support measures with over HKD 450 billion in dedicated funds and 30 business day guarantee scheme decisions
The Hong Kong Monetary Authority and 18 banks in the Taskforce on SME Lending have launched new measures to support local SMEs facing oil price volatility and global uncertainty. The package expands SME lending capacity to over HKD 450 billion, enhances credit relief and flexible repayment under the SME Financing Guarantee Scheme, and promotes greater use of fintech and commercial data, including the Cargo x Pilot Programme, to improve credit assessment and trade finance. Since 2024, three rounds of SME support have covered more than 89,000 cases with aggregate credit limits exceeding HKD 209 billion.