Report
Q2 2025 Industry Insights
Hong Kong Consumer Credit Diverged by Product in Q2 Amid Uneven Demand
Q2 2025 Report highlights include:
- New credit card activity contracted significantly amid weaker demand and lender pullback, although subprime borrower share edged higher off a low base
- Revolving line originations decreased significantly, with market share shifting away from digital banks amid increasing delinquencies
- Mortgage market expanded as property affordability improved, supported by modest balance growth in the context of favourable policy measures
Insights from the Hong Kong Industry Insights Report for Q2 2025¹ show that the credit market experienced growth in personal loans and mortgage originations during the quarter, while credit card and revolving line activities declined significantly. These declines in new consumption-led products were likely driven by consistently elevated unemployment across the population, especially among younger consumers², while older cohorts appeared to shift their focus towards maintaining larger property loans.
Summary of growth in unsecured lending products Q2 2025
*Originations are reported one quarter in arrears due to data lag and reflect Q1 2025 volumes. The YoY change in originations reflects movement between Q1 2024 and Q1 2025.
Source: TransUnion Credit Information Services consumer credit database
“Elevated youth unemployment is a leading indicator for what lenders can expect of credit market growth activity over the next six to 12 months. Lenders should revisit their originations strategies in the coming months and identify growth opportunities among the younger generation, given the reduced participation and demand from Gen Z borrowers.”
Weihan Sun, principal of research and consulting for Asia Pacific at TransUnion
About the Hong Kong Industry Insights Report
TransUnion’s quarterly Hong Kong Industry Insights Report provides in-depth, statistical information drawn from its regional consumer credit database, aggregated across virtually every active credit file on record. Each file contains hundreds of credit variables that illustrate consumer credit usage and performance. Entities across industries can subscribe to and leverage the Industry Insights Report to analyse market dynamics throughout an entire business cycle, helping them understand consumer behaviour over time. The report looks at major consumer lending categories: credit cards, loan on cards, personal loans, revolving lines, mortgages, and auto loans, focusing primarily on three dimensions across these categories: originations (new accounts opened), balances (outstanding total and average lending balances) and delinquencies (accounts in payment arears).
¹ TransUnion's second Industry Insights Report for Hong Kong in 2025 is based on data from the Credit Reference Platform under Credit Data Smart (CDS), following the full migration by the end of November 2024. Future reports will continue to leverage data from this source.
² Census and Statistics Department: Table 210-06103 : Unemployment rate and underemployment rate by age and sex
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