The Hong Kong Monetary Authority and the banking industry have launched a new round of measures to support small and medium-sized enterprises.

Today (April 29), after a meeting between the Hong Kong Monetary Authority (HKMA) and the "Special Task Force on SME Financing" (Task Force), together with the banking industry, a new round of support measures has been introduced to assist local small and medium-sized enterprises in coping with the current volatile market environment. Since 2024, the HKMA and the banking industry have introduced three rounds of support measures to assist small and medium-sized enterprises in various industries in dealing with the uncertainty of the external environment and the challenges brought about by economic transformation. So far, more than 89,000 small and medium-sized enterprises have benefited from these measures, involving credit facilities exceeding HK$209 billion. The recent geopolitical situation in the Middle East has caused significant fluctuations in international fuel prices, bringing greater uncertainty to the global economy and exacerbating operational challenges for some small and medium-sized enterprises in certain industries. Therefore, the HKMA and the banking industry have introduced a new round of measures to support SMEs in obtaining bank financing, enhancing business resilience, and accelerating their transformation: Increase in reserved funds for SMEs: 18 Task Force-participating banks have further expanded the amount of reserved funds for SMEs in their loan portfolios, increasing the total from HK$370 billion in October 2024 to over HK$450 billion currently, demonstrating the industry's commitment to supporting SMEs. Providing credit support to affected industries: The rise in oil prices has significantly increased operating costs for some small and medium-sized enterprises, especially in the transportation and logistics, manufacturing, and import-export industries. The Task Force-participating banks will provide appropriate credit support to SMEs affected by oil price fluctuations, including flexible repayment arrangements, extended loan tenures, and more trade finance extension options, to alleviate the financial pressure on businesses. Accelerating the approval process for the SME Financing Guarantee Scheme: All Task Force-participating banks and the Hong Kong Export Credit Insurance Corporation (HKECIC) have committed to completing the approval process within 30 working days after receiving all necessary documents, enhancing efficiency and transparency so that clients can keep track of the progress and make flexible plans and financial arrangements to respond to market changes and operational needs in a timely manner. Introducing flexible repayment loan support for SME transformation: Considering that SMEs may require a large amount of funding during their transformation, Task Force-participating banks will customize financing solutions with flexible repayment arrangements (such as partial early repayment or "staggered" repayment models) based on individual business needs to meet the fund requirements of companies during the expansion of new businesses and the digital, intelligent, and green transformation processes. Deepening the use of financial technology and data to assist SMEs in obtaining bank financing: Task Force-participating banks are committed to further utilizing financial technology and data to optimize the loan approval process for SMEs and provide faster and more suitable credit solutions to clients. Among these initiatives, all major banks providing trade finance services will actively participate in the HKMA's CargoX pilot program to utilize the "Commercial Data Interchange" data infrastructure to connect freight logistics and trade data, combined with automated trade finance solutions, to more effectively evaluate credit risks of enterprises, thereby speeding up the approval process and enhancing the opportunities and efficiency for SMEs, especially import-export traders, to obtain trade finance. The HKMA and the banking industry will continue to closely monitor market developments and maintain close communication with the business sector through the Task Force to understand the needs of SMEs in various industries and provide support as needed to promote the development and transformation of the Hong Kong economy and SMEs.