Hong Kong’s Hang Seng launches $4.2b SME-focused fund

Photo credit: Hang Seng Bank

Hong Kong’s startup scene is considered the second-best in the world and the first in Asia, according to the 2023 Global Startup Ecosystem Index. However, the city is not unaffected by the recent reduction in global funding.

To tackle this, the government has introduced a variety of supportive measures such as tax cuts.

Now, Hang Seng Bank, one of the largest banks in Hong Kong, has launched a HK$33 billion (US$4.2 billion) fund to aid the city’s smaller businesses, including startups.

The SME Power Up Fund offers various loan options including trade finance and revolving loans. It also has ESG offerings such as green loans and social loans.

According to the bank, it launched the fund to help companies through their post-pandemic woes such as inadequate cash flow, a loss in business momentum, and rising operational expenses. It also aims to support startups that are looking to expand across the Greater Bay Area.

The fund “is our tangible commitment to SMEs, structured to complement the government’s supportive measures highlighted in the recent budget,” said Regina Lee, head of commercial banking at Hang Seng Bank.

The bank said that it currently serves nearly 25% of SMEs in Hong Kong. It added that around 60% of its new customers are startups.

See also: This Hong Kong startup develops AI to help banks find dirt on SMEs

Currency converted from Hong Kong dollar to US dollar: US$1 = HK$7.82.