The Hong Kong Monetary Authority published the results of its Survey on Small and Medium-Sized Enterprises’ Credit Conditions for the second quarter of 2025, indicating that SMEs’ credit conditions remained broadly stable. The survey nevertheless points to a shift in sentiment, with a larger share of respondents perceiving bank credit approvals as more difficult than in the previous quarter. Excluding “no idea/don’t know” responses, 65% of SMEs perceived banks’ credit approval stance as “similar” or “easier” than six months earlier, down from 75% in the previous quarter, while 35% perceived it as “more difficult” (25% previously). Among SMEs with existing credit lines, 1% reported a “tighter” stance on those lines (down from 5%), and 3% of respondents reported applying for new bank credit; of those with known outcomes, 67% reported fully or partially successful applications (down from 79%). The HKMA cautioned that results may be prone to fluctuations given small sample sizes for SMEs with existing credit lines (16% of surveyed SMEs) and new credit applications (3%), and noted that perceptions may not directly reflect banks’ actual credit supply.
Hong Kong Monetary Authority 2025-08-01
Hong Kong Monetary Authority survey shows SME credit conditions broadly stable but approvals perceived tougher in Q2 2025
The Hong Kong Monetary Authority's Q2 2025 Survey on SMEs’ Credit Conditions shows stable credit conditions but a shift towards more difficult bank credit approvals. Excluding uncertain responses, 65% of SMEs viewed credit approval as "similar" or "easier" than six months prior, down from 75%, while 35% found it "more difficult," up from 25%. The HKMA noted potential fluctuations due to small sample sizes and that perceptions may not align with actual credit supply.