Hong Kong Transport and Logistics Bureau: Expanding the shipping network and financing support for SMEs to enhance the competitiveness of Hong Kong's freight logistics industry

The Zhitong Finance App learned that on May 21, the Secretary for Transport and Logistics of Hong Kong, Chen Meibao, said in response to lawmakers' questions that the abusive application of tariffs by the United States has had a profound negative impact on global trade, and the overall global trade volume is expected to decline. Facing the new pattern of international trade, the authorities will continue to expand Hong Kong's shipping and aviation networks to help enhance market diversity and reduce dependence on the US market. At the same time, through various funding schemes and support measures, Hong Kong will help SMEs meet various challenges and maintain competitiveness in a complex and changing economic environment.

Chen Meibao mentioned that the authorities have adopted five major strategies to help Hong Kong's freight logistics industry meet challenges. The first is to actively explore emerging markets such as the Middle East and ASEAN, and continue to explore other “Belt and Road” markets to promote Hong Kong's logistics advantages to the outside world. Second, Hong Kong will strengthen port cooperation with the Guangdong-Hong Kong-Macao Greater Bay Area, make every effort to establish a “railway, sea, land and river” three-dimensional intermodal transport system with the mainland, and explore new sources of goods.

Third, the authorities are actively studying exemption from import and export permit requirements for some goods to attract more goods to transit through Hong Kong. Fourth, Hong Kong will deepen international port and ship cooperation, promote the digitalization, greening and intelligence of ports, and enhance the competitiveness of Hong Kong ports. Fifth, Hong Kong will continue to expand Hong Kong's shipping and aviation networks to help enhance market diversity and reduce dependence on the US market.

In terms of capital turnover, the Government continues to optimize the SME Financing Guarantee Scheme (SME) to meet the financing needs of SMEs during the economic downturn. Borrowers of the plan, including companies in the logistics industry, are now more allowed to apply for a “no repayment” arrangement for up to 12 months, until November 17, 2025; at the same time, the maximum loan guarantee period for 80% and 90% credit guarantee products under the plan will be extended to 10 years and 8 years, respectively; and “partial principal repayment” options for newly created loans will be provided to improve repayment flexibility.

The Hong Kong Monetary Authority, together with the banking industry, also re-introduced support measures in April this year to further assist small and medium-sized enterprises to obtain bank financing and upgrade and transformation. Furthermore, all 18 banks participating in the “SME Financing Task Force” once again promised to actively implement the “9+5” measures introduced by the HKMA and the banking industry in 2024 to support SMEs, including continuing to provide flexible repayment arrangements and extending loan repayment periods in accordance with the principle of “no principal repayment” plans. The special funds set aside by these banks for SMEs in their loan portfolios have increased from HK$370 billion in October 2024 to over HK$390 billion now.

In terms of export credit insurance, following the “2024 Policy Address”, which proposed increasing the maximum coverage rate of the Hong Kong Export Credit Insurance Agency (ICPC) to 95%, the Credit Insurance Council introduced three additional support measures on April 10, 2025, including extending free pre-delivery risk protection for “small turnover insurance” insurers; providing 50% off pre-shipment risk protection for non-“ small turnover insurance policy” insurers, and unifying premium rates in emerging markets and traditional major markets to help enterprises explore emerging markets. The Hong Kong Credit Insurance Council will also provide 20 additional free credit assessment services to mainland, ASEAN and Middle Eastern buyers, cooperate with financial institutions to provide financing support for e-commerce, and credit insurance for export services related to the multinational supply chain to support Hong Kong's export trade.