Hong Kong Monetary Authority: Credit conditions for SMEs remained generally stable in the second quarter

The Zhitong Finance App learned that on August 3, the Hong Kong Monetary Authority announced the results of the “SME Loan Status Survey” for the 2nd quarter of 2026. The survey showed that the credit situation of SMEs remained generally stable. Regarding the perception of SME's approach to bank loan approval (that is, the level of difficulty), excluding respondents who answered “no comments/I don't know”, 78% thought that the bank's approach to loan approval in the second quarter of 2026 was “no different” or “easier” than six months ago, up from 73% in the previous quarter. 22% thought the bank's response was “difficult,” compared to 27% in the previous quarter. The perception that loans are difficult does not necessarily reflect that SMEs are experiencing substantial difficulties in borrowing, but can be influenced by many factors (such as media/news reports, business conditions, and opinions from family and friends).

Of the respondents who have been granted loans, 4% said that banks have “tightened” their approach to loans, up from 0% in the previous quarter. In this survey, the meaning of loan tightening includes various possibilities, such as reducing backup credit amounts and loan amounts, increasing credit interest rates, increasing collateral requirements, or shortening loan terms. As a result, interviewees indicated that the bank's approach to its loans did not directly reflect the bank's actual investment in loans to SMEs.

The survey also collected the results of new SME loan applications. 3% of respondents said they had applied for a new loan from the bank in the 2nd quarter of 2026. Of the respondents whose application results are known, 85% said their application was completely successful or partially successful, down from 91% in the previous quarter. Due to the small number of SMEs with approved loans and SMEs applying for new loans during the quarter, accounting for only 15% and 3% of the SMEs surveyed, the survey results are prone to large fluctuations, so care must be taken when interpreting.