Credit Cards Led Hong Kong Consumer Credit Market Growth
The Hong Kong consumer credit market continues to benefit from favourable economic conditions, including low unemployment, high labour force participation and rising wages. Credit cards — the most widely held credit product in Hong Kong — are leading the rise in overall consumer balance growth. In addition, younger consumers are having an impact on current and future trends.
Credit cards – the most widely held credit product in Hong Kong – are leading the rise in overall consumer balance growth. Q2 2018 is now the third consecutive quarter in which year-over-year card balance growth has exceeded inflation. This balance growth has been driven by both new card originations and increased utilization of existing cards.
"As we’ve seen in recent quarters, the youngest generations are driving growth in the consumer credit market. Many of these consumers are still early in their careers and entering household formation life stages, and their credit needs are continuing to evolve and grow. This bodes well for the overall Hong Kong market today and in the future."
Brendan le Grange, Director, Research and Consulting at TransUnion Hong Kong
TransUnion Hong Kong’s newly released Q2 2018 Industry Insights Report (IIR) showed positive originations and balance growth across most major consumer lending products, with generally low and stable delinquency rates, as consumers continue to access credit and are able to successfully manage current debt levels.