HSBC to provide US$3.9 billion in additional relief to Hong Kong businesses hit by coronavirus outbreak

HSBC said on Sunday that it will provide more than HK$30 billion (US$3.9 billion) in additional liquidity relief to Hong Kong businesses pressured by the effects of the coronavirus outbreak on the city’s economy.

The bank, one of three lenders authorised to issue currency in the city, said it would now allow taxi and public light bus operators to make interest-only payments for six months and borrowers of property-secured commercial loans to do so for up to one year if they apply by June 30. HSBC had been providing similar relief to small and medium-sized enterprise customers since September under two government loan schemes set up following months of street protests in Hong Kong.

Trade finance customers will be able to apply to convert part of their loan facility into an overdraft facility worth up to HK$10 million for six months to help with payroll and other operational needs. The bank is also extending import trade loans set to mature between February 10 and the end of April with no additional fee or penalty for customers with a sound trade finance record.

The new measures by HSBC come a day after ICBC Asia, the Hong Kong arm of China’s largest lender, Industrial and Commercial Bank of China, became the seventh local bank to say it would provide relief measures to business owners.

“Our community needs every bit of help at this unprecedented time,” Diana Cesar, chief executive, Hong Kong at HSBC, said. “We are committed to supporting our customers and will introduce more initiatives that will provide near-term relief.”