Hong Kong Tightens Money Lending Rules to Curb Over-Borrowing Risks

Hong Kong money lending rules will be tightened to curb excessive borrowing, with new caps on debt-servicing ratios set at 35% for borrowers earning HKD6,000(USD770) or less monthly and 40% for those earning HKD6,001 to HKD12,000.

Authorities will also ban loan referee requirements and mandate clearer risk warnings in contracts.

From June next year, lenders must upload loan data every 30 days to the Credit Data Smart platform.

Officials said the Hong Kong money lending rules aim to protect low-income borrowers and reduce systemic risk in consumer lending.