Measures will tackle trade dispute

October 4, 2018

Secretary for Commerce & Economic Development Edward Yau:

I have got the consent of the Financial Secretary to make improvements to an SME financing scheme. This scheme has been running for a period of time but it’s meant to be lapsed by next February, but we will be extending this scheme, this 80% guarantee scheme, up to the middle of next year as a first step. We have also introduced certain improvement measures including three parts, first is in fact to raise the maximum loan amount from $12 million, the current ceiling, to $15 million, giving more room for guarantee on this loan financing scheme. The second part is to extend the maximum loan period from currently five years to seven years. This would mean the monthly repayment would be reduced immediately. The third improvement is to reduce the fee charged on people joining this scheme as a relief to SMEs.

The Government will improve the SME Financing Guarantee Scheme to help enterprises affected by the trade dispute between the Mainland and the US.

Secretary for Commerce & Economic Development Edward Yau made the statement today after meeting representatives of major chambers of commerce and associations of small and medium enterprises.

Mr Yau said the trade dispute between the Mainland and the US is unlikely to be resolved in a short period of time.

“That's why we have stepped up measures which would provide a timely relief to people in trade, in particular those small and medium businesses.”

Mr Yau added he received the Financial Secretary's consent to make improvements to the SME Financing Guarantee Scheme.

“This scheme has been running for a period of time but it’s meant to be lapsed by next February, but we will be extending this scheme, this 80% guarantee scheme, up to the middle of next year as a first step.”

He said the Government has introduced other improvement measures, including raising the maximum loan amount to $15 million and to extend the maximum loan guarantee period to seven years, meaning monthly repayment would be reduced immediately.

There is also a need for Hong Kong to diversify its markets and sourcing to minimise the impact of tariffs imposed by the US on China-made products, Mr Yau added.