Bankruptcy filings hit nine-year high

Hong Kong saw a nine-year high in bankruptcy petitions last year, rising nearly 17 percent year-on-year to 9,190 cases, as data from the Official Receiver’s Office shows, while new registrations of local companies also hit a record 145,000.

There were 781 bankruptcy petitions in December alone, a 15.7 percent increase from the previous year, but a 6.2 percent decline compared to November.

The number of bankruptcy orders made by the court reached 8,553, up 16.4 percent from 2023, the highest since 2017.

Both compulsory winding-up petitions presented and compulsory winding-up orders made by the court reached their highest levels since 2010, increasing by 30.7 percent and 25.1 percent, respectively.

The Hong Kong Small and Medium Enterprises Association calls on the government and banks to continue supporting businesses amid challenging circumstances, for example, by maintaining the practice of not asking customers to repay loans in advance, says president Andrew Kwok Chi-wah.

Elsewhere, high interest rates and weakened consumer demand have pushed US corporate bankruptcy rates to their highest level since the global financial crisis.

At least 686 US companies filed for bankruptcy last year, an 8 percent increase from 2023, marking the highest number since 2010.

(Melody Chen)