The Hong Kong Monetary Authority (HKMA) and the banking sector have introduced a new round of SME support measures, increasing dedicated lending funds to over HK$450 billion and using fintech to speed up trade finance approvals.
Participating banks in the Taskforce on SME Lending have expanded their dedicated loan portfolios from HK$370 billion in October 2024.
A key focus of the new package is improving access to working capital through data integration and automation.
To speed up credit decisions, all major banks with material trade finance businesses will join the HKMA’s Cargox Pilot Programme.
The initiative connects cargo and trade data through the Commercial Data Interchange (CDI).
By integrating this data with trade finance automation tools, lenders can conduct credit risk assessments more effectively.
This process is expected to expedite approvals and improve access to funding for importers and exporters.
Lenders and the HKMC Insurance Limited have also committed to expediting the SME Financing Guarantee Scheme (SFGS).
Under normal circumstances, participating banks and HKMC Insurance Limited will inform applicants of their approval outcomes within 30 business days after receiving all necessary information.
Alongside faster approvals, banks are rolling out flexible repayment loans to help smaller businesses fund their digital and green transformations.
These custom arrangements include step-up schedules and partial principal repayments in the early stages of a loan.
The taskforce is also offering credit relief to companies facing cash flow pressures from volatile international oil prices and rising operating costs.
Relief options include loan tenor extensions and flexible repayment plans for the transport, logistics, and manufacturing sectors.
Since 2024, the HKMA has launched three rounds of support initiatives to help smaller businesses navigate economic shifts.
To date, these programmes have benefitted over 89,000 cases with an aggregate credit limit exceeding HK$209 billion.
Featured image credit: Edited by Fintech News Hong Kong, based on image by lifeforstock via Magnific
