HSBC Holdings has boosted its loan fund for small and medium-sized enterprises by HK$4 billion, the third increase this year, as loan demand rises with a positive shift in the economic outlook and improved government programmes.
The fund size increased to HK$16 billion, following HK$4 billion top-ups in March and June, Hong Kong's largest lender said yesterday.
'There has been a surge in loan applications since the Hong Kong government announced enhancements to its loan guarantee schemes in May, and our customers are telling us they have seen a pick-up in orders since the fourth quarter of 2008,' said John Coverdale, HSBC's global co-head of commercial banking for Asia-Pacific.
'As our recently published small business confidence monitor shows, SMEs are looking to the second half of the year with more optimism, which is translating into a pick-up in business activity.'
The survey found that Hong Kong's SMEs have made a significant positive shift in their economic outlook since the fourth quarter of last year, driving a 33-point increase in overall business confidence levels.
HSBC has approved more than HK$12 billion in loans to 5,454 SMEs since the original HK$4 billion fund was launched in December last year. More than 90 per cent of those loans were for applicants through the government's SME loan guarantee scheme and special SME loan guarantee scheme, the bank said.
