Hong Kong bankruptcies hit 2-year monthly high with more than 870 filings in May
- But government says figure not reflective of city’s ‘economic reality’, highlights low unemployment rate and signs of retail, tourism recovery
More than 870 people applied for bankruptcy in Hong Kong in May, marking a two-year monthly high, but authorities argued the “fluctuating figures” do not reflect the city’s “economic reality”.
The government on Friday pointed to the low unemployment rate and signs of recovery in the retail and tourism sectors as reasons to remain upbeat, while economists attributed the spike in bankruptcy cases to the depreciation of property values and high interest rates.
Data released by the Official Receiver’s Office showed the city recorded 871 applications for bankruptcy last month, up from the 742 petitions logged in April and 783 in March.
The latest figure was a 35 per cent increase over the 646 recorded last May. It was also the highest monthly figure since April 2022, when 930 bankruptcy applications were filed.
In the first five months of the year, 3,797 bankruptcies were logged, a 25 per cent increase over the 3,031 recorded in the same period in 2023.
But the number of bankruptcy orders dropped to 624 in May from 859 in April, a 38 per cent decrease, after jumping from 641 cases in March, according to the office.
