Hong Kong Monetary Authority: The credit conditions for small and medium-sized enterprises in the second quarter remained generally stable.

On August 3, the Hong Kong Monetary Authority released the results of the "SME Loan Status Survey" for the second quarter of 2026. The survey indicates that the credit conditions for SMEs remain generally stable. Regarding SMEs perceptions of banks' loan approval attitudes (i.e., the ease of obtaining loans), excluding respondents who answered "no opinion/don't know," 78% believe that banks' attitudes towards loan approvals in the second quarter of 2026 are "no different" or "easier" compared to six months ago, up from 73% in the previous quarter. 22% find that banks' attitudes are "more difficult," down from 27% in the last quarter. The perception of loans being more difficult does not necessarily reflect substantial challenges faced by SMEs in borrowing but can be influenced by several factors (such as media/news reports, business performance, and opinions from friends and family). Among the respondents who had received approved loans, 4% indicated that banks had "tightened" their attitudes towards their loans, an increase from 0% in the previous quarter. In this survey, "tightening" includes various possibilities, such as reducing lines of credit and loan amounts, increasing interest rates, requiring more collateral, or shortening loan terms. Therefore, respondents stated that banks' attitudes towards their loans do not directly reflect the actual loan disbursement by banks to SMEs. The survey also collected results regarding new loan applications by SMEs. 3% of respondents reported applying for new loans from banks in the second quarter of 2026. Among those whose application results were known, 85% indicated that their applications were fully or partially successful, down from 91% in the previous quarter. Due to the small number of SMEs that had received approved loans and those that applied for new loans in the quarter, accounting for only 15% and 3% of surveyed SMEs respectively, the survey results are prone to significant fluctuations, which should be taken into account during interpretation.