Report
Q2 2026 Industry Insights
Hong Kong’s Consumer Credit Market Strengthens in Q2 2026 Amid Improved Economic Activity and Domestic Spending
Q2 2026 Report highlights include:
- Credit card originations increased, driven in part by rising demand from Gen Z consumers, who accounted for nearly one in four new card accounts
- Outstanding balances grew across credit cards and personal loans against a backdrop of positive domestic consumption momentum
- New lending increasingly concentrated among higher-quality borrowers, with prime plus and super prime risk tiers leading growth
Hong Kong's consumer credit market continued to benefit from improving lender and consumer confidence in the second quarter of 2026, as stronger domestic demand supported balance growth across credit cards and personal loans. New activity reflected a disciplined approach from lenders, with originations increasingly concentrated among lower risk borrowers, while portfolio performance remained broadly stable to improving.
GDP grew 4.3%¹ in Q2, driven by robust exports and resilient domestic demand. Meanwhile residential property prices rose 7.9%² in the first half of the year, reaching their highest level in two and a half years. Consumer confidence also improved, with the value of total retail sales increasing 4.6% year-over-year (YoY)³ in June, led by 20.1% growth in jewellery and valuable gifts and an 11.3% increase in electronic and durable consumer goods.
Summary of growth in unsecured lending products Q2 2026
*Originations are reported one quarter in arrears due to data lag and reflect Q1 2026 volumes. The YoY change in originations reflects movement between Q1 2025 and Q1 2026.
Source: TransUnion Credit Information Services consumer credit database
“Looking ahead, lenders have a clear opportunity to capture rising organic demand for credit cards from Gen Z consumers, while defending their top-of-wallet position with prime and above borrowers who continue to drive card origination growth. At the same time, growing wallet diversification among Millennials for personal loans is reshaping engagement strategies.
With improving economic conditions and renewed consumer confidence, lenders that can effectively identify and engage these distinct segments through advanced analytics will be best positioned to deliver sustainable growth in the second half of 2026.”
Weihan Sun, Senior Director 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 News.gov.hk: Economy grows 4.3% in Q2
2 Rating and Valuation Department: Property Market Statistics
3 Census and Statistic Department: Provisional Statistics of Retail Sales for June 2026
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