Hong Kong’s consumer credit market is set to show ongoing gains in lender and borrower confidence in Q2 2026, building on a first quarter marked by larger loan sizes and stricter credit card limits, according to TransUnion’s latest Industry Insights Report published on August 26, 2026.

During Q1 2026, average loan sizes expanded 9.1% year-on-year, driven by increased appetite from major institutions and a higher concentration of prime-plus and super-prime applicants. Although new credit card originations rose 6.7% year-on-year in Q1, average credit limits on these new cards fell 6.3%, demonstrating sustained underwriting discipline among financial institutions.

Looking ahead to Q2 2026, TransUnion expects robust domestic demand to fuel balanced expansion across both credit cards and personal loans. Total credit card balances grew 4.3% year-on-year in Q2, backed by steady retail activity, while average balances per customer ticked up 3.4%. Weihan Sun, TransUnion’s senior director of research and consulting for Asia Pacific, noted that lenders are selectively targeting lower-risk consumers. Sun highlighted that securing market share among prime and premium cardholders will be a vital growth opportunity as overall sentiment strengthens.

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