HKMA and Banks Launch Taskforce to Enhance SME Lending Support and Communication

Taskforce on SME Lending holds its inaugural meeting

The following is issued on behalf of the Hong Kong Monetary Authority:

The joint Taskforce on SME Lending established by the Hong Kong Monetary Authority (HKMA) and the Hong Kong Association of Banks (HKAB) held its inaugural meeting today (September 5). The meeting was co-chaired by Deputy Chief Executive of the HKMA Mr Arthur Yuen and the Chairperson of the HKAB, Ms Luanne Lim, and was attended by representatives of the HKMA, the HKAB and 14 banks that are active in small and medium-sized enterprise (SME) lending (Note).

The meeting discussed issues related to SME lending and property mortgage lending, including common issues identified in individual cases of SMEs or members of the public who encountered difficulties in obtaining or maintaining bank financing, feedback from the commercial sector, as well as ways to further strengthen communication between the banking industry and the commercial sector. Highlights of the discussion include the following:

The Taskforce agreed that it is necessary for banks to maintain consistent and effective risk management to safeguard depositor interests. As such, for cases of prolonged non-repayment despite relief or restructuring provided, banks will inevitably take appropriate actions while ensuring such actions are implemented and communicated to the customers in an accommodative manner.

In addition, the Taskforce discussed ways to further promote banks' support for the development, upgrade and transformation of SMEs. In this connection, the HKMA and the banking industry will continue to maintain close communication with the commercial sector, and will organise related seminars and other activities in the coming two months to assist SMEs to improve their productivity through better use of data and technology. Details of the events will be announced in due course.

The Taskforce was jointly established by the HKMA and the HKAB in August this year to further strengthen the related work for supporting SMEs in obtaining bank financing at both the individual case and the industry levels. This includes setting up a mechanism to review individual cases of SMEs encountering difficulties in obtaining or maintaining bank financing, with the HKMA referring cases to the relevant banks for handling. Where common issues are identified among the cases, the Taskforce will work out appropriate solutions for adoption across the banks. Furthermore, the Taskforce will continue enhancing the communication among the HKMA, the banking industry and commercial sector, so as to understand the financing needs of SMEs in a timely manner and to provide better support for SMEs' development, update and transformation.

Note:Bank of China (Hong Kong), Bank of Communications (Hong Kong), Bank of East Asia, China CITIC International, China Construction Bank (Asia), Citibank, Dah Sing Bank, DBS Bank (Hong Kong), Hang Seng Bank, The Hongkong and Shanghai Banking Corporation, Industrial and Commercial Bank of China (Asia), OCBC Bank (Hong Kong), PAO Bank, and Standard Chartered Bank (Hong Kong).

New Capital Investment Entrant Scheme releases online application platform, reports promising increase in application figures

Invest Hong Kong (InvestHK) announced today (September 16) that the applicants of the New Capital Investment Entrant Scheme (the New CIES) can now submit application forms for Net Asset Assessment and Assessment on Investment Requirements online. The application details can be found on the New CIES website (www.newcies.gov.hk/en/apply-now).

InvestHK will continue to accept paper application forms for Net Asset Assessment or Assessment on Investment Requirements from applicants on or before October 15. InvestHK also reminds that before submitting online application forms for Net Asset Assessment or Assessment on Investment Requirements, the applicant is required to engage a Certified Public Accountant (Practising) as defined in the Accounting and Financial Reporting Council Ordinance (Cap. 588 of the Laws of Hong Kong) at his/her own cost to issue fulfilment documents, to assist in demonstrating his/her fulfilment of the relevant requirements under the New CIES. For the guide on preparation of fulfilment documents, an applicant can refer to the relevant document and the circular published by the Hong Kong Institute of Certified Public Accountants as provided on the New CIES website (www.newcies.gov.hk/en/resources/scheme-rules-and-documents).

In addition, InvestHK has continuously seen a strong response since the launch of the New CIES on March 1, and here are the key numbers of the New CIES as of September 13.

Number of enquiries

Over 5 000

Number of applications

Over 500

Applications verified as having fulfilled the Net Asset Requirement

(i.e. applicant has net assets of not less than HK$30 million in the two years preceding his/her application）

448

Applications verified as having fulfilled the Investment Requirements

(i.e. applicant has already made investment of HK$30 million in Hong Kong within the six-month time limit)

47

Expected investment amount to be brought into Hong Kong

Over HK$15 billion

The Director-General of Investment Promotion, Ms Alpha Lau, said, "The increasing New CIES application figures reflect the strong confidence from high-net-worth individuals in Hong Kong. The Scheme attracts successful businessmen and innovative entrepreneurs, and enhances the strengths of Hong Kong's asset and wealth management industry. InvestHK will continue the promotion and publicity efforts on the New CIES and also encourages applicants to use the online application platform as early as possible to save time spent on filling out paper application forms, and to enjoy more convenient and efficient application services.

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For more information on the eligibility criteria and relevant details, please visit the New CIES website (www.newcies.gov.hk). For enquiries, please call the enquiry hotline at 3904 3001 or email to newcies@investhk.gov.hk.

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