Survey on Small and Medium-Sized Enterprises' Credit Conditions for First Quarter 2026
The following is issued on behalf of the Hong Kong Monetary Authority:
The Hong Kong Monetary Authority (HKMA) published today (May 4) the results of the Survey on Small and Medium-Sized Enterprises (SMEs)' Credit Conditions for the first quarter of 2026. According to the survey, SMEs' credit conditions remained broadly stable.
Regarding SMEs' perception of banks' credit approval stance relative to six months ago, excluding respondents who answered "no idea/don't know", 73 per cent perceived a "similar" or "easier" credit approval stance in the first quarter of 2026, up from 70 per cent in the previous quarter (Chart 1 in the Annex). 27 per cent perceived a "more difficult" credit approval stance, compared to 30 per cent in the previous quarter. The perception of a more difficult credit approval stance may not necessarily reflect actual difficulties faced by SMEs in obtaining bank credit as the perception could be affected by a number of factors, such as media/news reports, business conditions and opinions of relatives and friends.
Among respondents with existing credit lines, 0 per cent reported a "tighter" banks' stance, down from 1 per cent in the previous quarter (Chart 2 in the Annex). In this survey, a tighter stance on existing credit lines denotes a range of possible measures or arrangements, such as reducing unused and used credit lines, raising the interest rate, imposing additional collateral requirements, or shortening loan tenor. Therefore, respondents' indication of banks' stance on existing credit lines may not directly reflect banks' supply of credit to SMEs.
The survey also gauged the results of new credit applications from SMEs. 2 per centof the respondents reported that they had applied for new bank credit during the first quarter of 2026. Among the respondents who had already known their application outcomes, 91 per centreported fully or partially successful applications, up from 77 per cent in the previous quarter (Chart 3 in the Annex).
Owing to small sample sizes of SMEs with existing credit lines (12per centof surveyed SMEs) and with new credit applications (2per cent of surveyed SMEs) during the quarter, the results could be prone to large fluctuations, and hence should be interpreted with care.
About Survey on SMEs' Credit Conditions
In light of the importance of SMEs to the Hong Kong economy and concerns about potential funding difficulties facing SMEs over the past few years, the HKMA has appointed the Hong Kong Productivity Council (HKPC) to carry out this survey, starting from the third quarter of 2016. This survey is conducted on a quarterly basis, covering about 2 500 SMEs from different economic sectors each time. The results of this survey can help monitor the development of SMEs' access to bank credit from a demand-side perspective.
The results of this survey should be interpreted with caution. Similar to other opinion surveys, views collected in this survey may be affected by changes in sentiment due to idiosyncratic events that occurred over the survey period, which can make the results prone to fluctuations. Readers are advised to interpret the results together with other economic and financial information. In addition, views collected are limited to the expected direction of inter-quarter changes (e.g. "tighter", "no change" or "easier") without providing information about the magnitude of these changes.
Detailed tables and technical information of this survey are published on the website of the HKPC (smecc.hkpc.org).
The Hong Kong Monetary Authority (HKMA), Photo source: reference image
Immigration Department and Travel Industry Authority mount joint anti-illegal worker operation
The Immigration Department (ImmD) and the Travel Industry Authority (TIA) today (May 4) mounted a joint anti-illegal worker operation to combat illegal workers providing tourist guide and tour escort services in Hong Kong. A Mainland visitor, who is a suspected illegal worker, was arrested.
As there have been suspected illegal workers utilising social media platforms to advertise tour guide and tour escort services in Hong Kong, the ImmD and the TIA initiated an operation. Officers disguised as customers enquired about and booked services from the suspect. The suspect was subsequently arrested while providing such services in Hong Kong. The arrested illegal worker was a man, aged 27. The ImmD will consider prosecution against him for the offence of breaching conditions of stay.
The ImmD and the TIA have also deployed officers to distribute leaflets to the public and visitors at tourist hotspots, conveying the message of "Don't employ illegal tour escorts or tourist guides".
An ImmD spokesman said, "Any person who contravenes a condition of stay in force in respect of him or her shall be guilty of an offence. Also, visitors are not allowed to take employment in Hong Kong, whether paid or unpaid, without the permission of the Director of Immigration. Offenders are liable to prosecution and upon conviction face a maximum fine of $50,000 and up to two years' imprisonment. Aiders and abettors are also liable to prosecution and penalties."
The spokesman stressed that it is a serious offence to employ people who are not lawfully employable. Under the Immigration Ordinance, the maximum penalty for an employer employing a person who is not lawfully employable, i.e. an illegal immigrant, a person who is the subject of a removal order or a deportation order, an overstayer or a person who was refused permission to land, has been significantly increased from a fine of $350,000 and three years' imprisonment to a fine of $500,000 and 10 years' imprisonment to reflect the gravity of such offences. The director, manager, secretary, partner, etc, of the company concerned may also bear criminal liability. The High Court has laid down sentencing guidelines that the employer of an illegal worker should be given an immediate custodial sentence.
According to the court sentencing, employers must take all practicable steps to determine whether a person is lawfully employable prior to employment. Apart from inspecting a prospective employee's identity card, the employer has the explicit duty to make enquiries regarding the person and ensure that the answers would not cast any reasonable doubt concerning the lawful employability of the person. The court will not accept failure to do so as a defence in proceedings. It is also an offence if an employer fails to inspect the job seeker's valid travel document if the job seeker does not have a Hong Kong permanent identity card. Offenders are liable upon conviction to a maximum fine of $150,000 and to imprisonment for one year. In that connection, the spokesman would like to remind all employers not to defy the law by employing illegal workers. The ImmD will continue to take resolute enforcement action to combat such offences.
Under the existing mechanism, the ImmD will, as a standard procedure, conduct an initial screening of vulnerable persons, including illegal workers, illegal immigrants, sex workers and foreign domestic helpers, who are arrested during any operation with a view to ascertaining whether they are trafficking in persons (TIP) and/or forced labour victims. When any TIP and/or forced labour indicator is revealed in the initial screening, the ImmD officers will conduct a full debriefing and identification by using a standardised checklist to ascertain the presence of TIP and/or forced labour elements. Identified TIP and/or forced labour victims will be provided with various forms of support and assistance, including urgent intervention, medical services, counselling, shelter or temporary accommodation and other supporting services. The ImmD calls on TIP and/or forced labour victims to report crimes to the relevant departments immediately.
For reporting illegal employment activities, please call the dedicated hotline 185 185, fax at 2824 1166, emailanti_crime@immd.gov.hk, or submit the "Online Reporting of Immigration Offences" form atwww.immd.gov.hk.
Immigration Department and Travel Industry Authority mount joint anti-illegal worker operation Source: HKSAR Government Press Releases
Immigration Department and Travel Industry Authority mount joint anti-illegal worker operation Source: HKSAR Government Press Releases
