Consumer lending in Hong Kong is experiencing a spike in growth as the economy recovers from the impact of the pandemic, with 14% growth in gross lending primarily driven by card lending. The reopening of borders in the fourth quarter of 2022 has sparked a strong desire among locals to travel abroad after staying in the domestic market for three years.
Millennials and Generation Z comprise over 70% of credit card applicants in Hong Kong, with each individual owning an average of more than seven credit cards. This highlights the robustness of consumer lending in the local market, as younger generations display confidence in obtaining loans for their personal financial needs.
In an attempt to enhance affordability for first-time homebuyers, Hong Kong has implemented relaxed mortgage rules for certain properties. This has sparked intense competition among banks to attract new mortgage customers, leading them to offer substantial cash rebates.
The Greater Bay Area Development Plan and the Hong Kong government's Top Talent Pass Scheme (TTPS) have prompted industry players to develop tailored lending options for this emerging group of consumers. Chinese banks, such as Bank of China, have set their sights on high-end talents arriving in Hong Kong through the TTPS.
The recovery of Hong Kong's local consumption expenditure is anticipated to be slower than expected. This can be attributed to the strong desire among local consumers to spend abroad during outbound travels, combined with a sluggish economic outlook that prompts individuals to tighten their budgets.
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Understand the latest market trends and future growth opportunities for the Consumer Lending industry in Hong Kong, China with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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Consumer Lending
Aggregate of Consumer Credit and Mortgages/Housing. Gross Lending: The total value of loans advanced by institutions in a given year; data refers to single year only. Outstanding Balance: The collective amount owed by borrowers at the end of a given year; data refers to the cumulative impact of debt.
See All of Our DefinitionsThis report originates from Passport, our Consumer Lending research and analysis database.
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