- Hang Seng Bank launches $4.2B fund for Hong Kong SMEs.
- The fund provides loans to aid post-pandemic recovery.
- It complements government support and targets Greater Bay Area expansion.
Hang Seng Bank, one of the largest banks in Hong Kong, has launched the SME Power Up Fund, a HK$33 billion (US$4.2 billion) initiative to support the city’s smaller businesses, including startups.
The fund offers various loan options, such as trade finance and revolving loans, to help companies navigate post-pandemic challenges, including inadequate cash flow, loss of business momentum, and rising operational expenses.
Complementing government measures
The launch of the SME Power Up Fund comes at a time when Hong Kong’s startup scene, ranked as the second-best in the world and the first in Asia by the 2023 Global Startup Ecosystem Index, is facing a reduction in global funding.
The fund aims to complement the government’s supportive measures, such as tax cuts, as highlighted by Regina Lee, head of commercial banking at Hang Seng Bank.
Future expansion across the Greater Bay Area
In addition to addressing post-pandemic challenges, the SME Power Up Fund also aims to support startups looking to expand across the Greater Bay Area.
The fund includes ESG offerings, such as green loans and social loans, to further assist businesses in their growth and sustainability efforts.
Hang Seng Bank currently serves nearly 25% of SMEs in Hong Kong, with around 60% of its new customers being startups.
To read the original article: https://www.techinasia.com/hang-seng-launches-42-billion-sme-fund
