Govt to support small and medium-sized enterprises amid changing consumption patterns, says Paul Chan

Financial Secretary Paul Chan Mo-po said he has instructed the Hong Kong Monetary Authority (HKMA) to maintain communication with banks and the business sector, ensuring that banks adopt a more accommodating approach to assist small and medium-sized enterprises (SMEs) with their cash flow needs. 

In a recent blog post, the financial chief highlighted the stable growth of the overall economy in the first quarter, with unemployment rates remaining below three percent and inflation at a moderate level.

The city welcomed over 11 million visitors, providing some support to the local retail, dining, and transportation sectors, he added.

However, Chan said the business sector faces challenges due to changes in visitor spending patterns and the surging number of locals opting for cross-border shopping, which has weakened confidence in the future outlook. 

He said the HKMA recently announced nine measures to support the financing requirements of SMEs, helping them sustain operations and development in the complex and ever-changing business environment.

These measures aim to prevent unnecessary pressure on the funding chain of SMEs during short-term market fluctuations and avoid triggering chain reactions that could adversely impact their financial stability, Chan stated.