Report: Hong Kong's Consumer Credit Spending Rose in Q3 2023
Hong Kong/ Venture/ Money

Hong Kong Reports Consumer Credit Spending Increase in Q3 2023

Hong Kongs Consumer Credit Spending Rose in Q3 2023

Hong Kong’s credit utilisation has seen an increase in the third quarter of the past year, information and insights company TransUnion said in a recent report.

According to the report, Hong Kong’s new-to-credit consumers saw a 32% growth, along with a 2.9% year-on-year increase in new credit cards issued. The company points to the revival in retail spending as the reason for the increase, especially during the summer sale season from July to August.

Other reasons indicated were the strategic offerings by lenders and the shifting focus toward more personalised and digital consumer experiences.

Revolving lines of credit also saw a notable surge, with 22.3% year-on-year growth, while origination volumes for unsecured personal loans dipped by 6.8%.

In the mortgage sector, an 18.7% year-on-year increase was also recorded, brought about by the decline in property values and new government policies to boost Hong Kong’s housing market.

“Once the market fully reopened after COVID-19 travel restrictions were lifted, new card volumes grew exponentially from pent-up demand and balances started to build as spend and consumption increased,” said Weihan Sun, principal of research and consulting for Asia Pacific at TransUnion.

The company is also looking to see whether this robust growth will extend to the first quarter of 2024.

To view the full report, click here.

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