Hong Kong SMEs perceive easier bank credit approval in Q4 2025
The Hong Kong Monetary Authority published the results of its survey on Small and Medium-Sized Enterprises' credit conditions for the fourth quarter of 2025. The survey indicates that SMEs' credit conditions remained broadly stable, with a higher percentage perceiving an easier bank credit approval stance.
SMEs perceive easier credit access
The Hong Kong Monetary Authority's survey for the fourth quarter of 2025 reveals an improved perception of bank credit conditions among Small and Medium-Sized Enterprises (SMEs).
A significant 70 percent of respondents perceived a "similar" or "easier" credit approval stance from banks, up from 59 percent in the previous quarter.
The percentage of SMEs reporting a "more difficult" stance decreased to 30 percent from 41 percent.
For businesses with existing credit lines, only 1 percent reported a "tighter" bank stance, a decline from 3 percent.
Among SMEs applying for new bank credit, 77 percent reported fully or partially successful applications, an increase from 72 percent.
The HKMA advises caution in interpreting these perceptions, noting they may not directly reflect actual credit supply.
External factors like media reports or general business sentiment can influence perceived lending policies, and a 'tighter stance' on existing lines encompasses various adjustments beyond mere credit reduction, such as changes in interest rates or collateral requirements.
Monitoring SME funding access
The Hong Kong Monetary Authority (HKMA) initiated this quarterly survey in Q3 2016, recognizing the vital role of Small and Medium-Sized Enterprises (SMEs) in the local economy and addressing concerns about their funding access.
Conducted by the Hong Kong Productivity Council (HKPC), the survey polls around 2,500 SMEs across various sectors each quarter to monitor their access to bank credit from a demand-side perspective.
The HKMA, however, strongly advises caution in interpreting the results.
The small sample sizes for SMEs with existing credit lines (14% of respondents) and new credit applications (2%) mean the data is prone to significant fluctuations.
Additionally, the survey captures perceptions influenced by sentiment or specific events, and it only indicates the direction of changes, not their magnitude.
These results should be considered alongside other economic and financial information for a comprehensive understanding.
Cautious optimism, limited insights
While the survey suggests an improved perception of credit conditions, the HKMA's repeated warnings about small sample sizes and sentiment-driven responses temper any strong conclusions.
The data offers a valuable demand-side snapshot but lacks the granularity on magnitude and actual credit supply to fully inform policy.
For policymakers, this report serves more as an early warning indicator of sentiment shifts rather than a definitive measure of SME financial health.