Hong Kong Monetary Authority: Support the sustainable development and transformation of small and medium enterprises, assist enterprises in expanding their cross-border business operations.

Arthur YUEN, Deputy Chief Executive of the Hong Kong Monetary Authority, attended a forum for small and medium-sized enterprises organized by the Hong Kong Association of Banks on October 20th. He stated that the Hong Kong Monetary Authority and the banking industry understand the urgent need for change among small and medium-sized enterprises, and have been committed to supporting their continuous development and transformation, especially in terms of funding, providing advice and professional services, as well as establishing networks to assist businesses in expanding their operations across borders. In the ever-changing new normal, small and medium-sized enterprises not only need to consolidate their own strengths, but also actively transform and develop new business markets to adapt to the changing environment. The Hong Kong Monetary Authority and the banking industry will continue to maintain close cooperation to support the continued development of the real economy and small and medium-sized enterprises, and seize cross-border cooperation opportunities together. In terms of funding support, the Hong Kong Monetary Authority and the Hong Kong Association of Banks established a "SME Financing Task Force" last year. The 18 participating banks have reserved special funds for small and medium-sized enterprises in their respective loan portfolios, with the total amount increasing from HK$370 billion in October last year to over HK$420 billion currently, further supporting customers in obtaining the funds they need and providing solid support for the continuous development of small and medium-sized enterprises. In terms of providing advice and professional services, banks not only arrange tailored cross-border financing solutions for small and medium-sized enterprise customers who are interested in "going global", but also provide them with professional consulting services, including cash management, financial services, and other professional advice to help small and medium-sized enterprises better and faster adapt to the cultural, regulatory, supervisory, and financial systems of new markets. Banks can also utilize their overseas branches and business networks to have local professional teams act as "guides" for customers in the new markets, making it easier for them to enter and adapt. As for networking, Hong Kong has always assisted many enterprises, including small and medium-sized enterprises, as a bridge to connect with the mainland and global markets. As Hong Kong's second largest trading partner, the total amount of goods trade between ASEAN and Hong Kong reached HK$1.3 trillion in 2024, accounting for approximately 14% of Hong Kong's total goods trade, and has recorded continuous growth in the past few years. Therefore, the Hong Kong Monetary Authority has been dedicated to promoting the work of banks and enterprises in utilizing Hong Kong's advantages and platforms to explore the ASEAN market in recent years. Arthur YUEN stated that as more companies establish operations in ASEAN countries and other places, the vast financial networks of banks can help Hong Kong enterprises connect with overseas markets. Therefore, the Hong Kong Monetary Authority actively encourages banks to cultivate regional knowledge and networks, enabling banks to better support clients in developing in the ASEAN region. In addition, the Hong Kong Monetary Authority has collaborated with the Hong Kong Association of Banks this year to organize multiple events dedicated to expanding the ASEAN market, attracting more than 500 local and overseas bankers, business representatives, and government officials to exchange views on the business environment and business development in Malaysia, Vietnam, and Indonesia. These activities have promoted regional cooperation, especially in helping Hong Kong banks and businesses seize new opportunities within the region. The Hong Kong Monetary Authority also participated in the first overseas delegation organized by the Hong Kong Association of Banks and the Hong Kong General Chamber of Commerce to visit Vietnam, where they met with local government officials, chambers of commerce, and representatives from various industries to discuss the local business environment, business opportunities, and facilitation measures, strengthening cross-border cooperation between the banking systems and business communities of Hong Kong and Vietnam in various sectors and jointly exploring new opportunities for more trade corridors.