Survey on Small and Medium-Sized Enterprises (SMEs)’ Credit Conditions for First Quarter 2026

On Mon, 04 May, the Hong Kong Monetary Authority ("HKMA") published the results of the Survey on Small and Medium-Sized Enterprises ("SMEs")’ Credit Conditions for the first quarter of 2026, indicating that SMEs’ credit conditions remained broadly stable.

Perception of Credit Approval Stance

Excluding 'no idea' responses, 73% perceived a similar or easier credit approval stance in Q1 2026 (up from 70%), while 27% perceived it as more difficult (down from 30%). Such perceptions may not reflect actual difficulties, as they can be influenced by media reports, business conditions, and opinions from relatives and friends.

Existing Credit Lines and New Applications

Among existing credit lines, 0% reported a tighter stance (down from 1%), defined as measures like reducing unused and used credit lines, raising rates, imposing collateral, or shortening loan tenor. This indication may not directly reflect banks’ supply of credit. Regarding new applications, 2% of respondents applied; 91% of known outcomes were successful (up from 77%). Due to small sample sizes (12% of surveyed SMEs with existing lines, 2% with new applications), results are prone to fluctuations and require careful interpretation.

Methodology and Interpretation Disclaimers

The HKMA appointed the Hong Kong Productivity Council ("HKPC") to conduct this quarterly survey since the third quarter of 2016, covering about 2,500 SMEs from different economic sectors. Results should be interpreted with caution, as views may be affected by sentiment changes due to idiosyncratic events. Readers are advised to interpret results with other economic and financial information, noting that views are limited to the direction of inter-quarter changes (e.g., 'tighter', 'no change' or 'easier') without providing information about the magnitude of these changes.