Market Insights Financial Capital Raising Digital Capital Raising

CrowdLending (Business) - Hong Kong

Hong Kong

The total transaction value in the Crowdlending (Business) market market in Hong Kong is expected to reach €7.79m in 2024.
When comparing globally, it is evident that China achieves the highest transaction value, amounting to €14,810m in 2024.
In Hong Kong, CrowdLending platforms are gaining popularity among small businesses seeking alternative capital raising options in the market.

Key regions: China, United Kingdom, Brazil, Israel, India

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Monnaie

Analyst Opinion

The CrowdLending (Business) market in Hong Kong is experiencing significant growth and development.

Customer preferences: In recent years, there has been a growing demand for alternative financing options among businesses in Hong Kong. This shift in customer preferences can be attributed to several factors. Firstly, traditional lending institutions such as banks have become more cautious in their lending practices, making it more difficult for small and medium-sized enterprises (SMEs) to access funding. As a result, businesses have turned to CrowdLending platforms as a viable alternative. Secondly, the convenience and speed of the CrowdLending process have made it an attractive option for businesses in need of quick financing. Finally, the transparency and flexibility offered by CrowdLending platforms have resonated with businesses, allowing them to customize their borrowing terms to better suit their needs.

Trends in the market: One of the key trends in the CrowdLending (Business) market in Hong Kong is the increasing number of platforms entering the market. As the demand for alternative financing options grows, more and more CrowdLending platforms are emerging to meet this demand. This trend has led to increased competition in the market, which has ultimately benefited businesses by providing them with a wider range of options to choose from. Additionally, there has been a shift towards more specialized CrowdLending platforms that cater to specific industries or sectors. This trend allows businesses to access funding from lenders who have a deeper understanding of their industry, resulting in more tailored financing solutions.

Local special circumstances: Hong Kong's status as a global financial hub has played a significant role in the development of the CrowdLending (Business) market. The city's strong regulatory framework and business-friendly environment have attracted both local and international CrowdLending platforms to set up operations in Hong Kong. This has created a vibrant ecosystem where businesses can easily access a diverse pool of lenders. Furthermore, Hong Kong's proximity to Mainland China has also contributed to the growth of the CrowdLending market. Many businesses in Hong Kong have close ties with Mainland China, and CrowdLending platforms have provided them with a convenient way to access funding for cross-border projects.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the growth of the CrowdLending (Business) market in Hong Kong. Firstly, the city's strong economic growth has created a favorable environment for businesses to thrive, leading to an increased demand for financing. Secondly, the low interest rate environment in Hong Kong has made borrowing more affordable for businesses, further driving the demand for alternative financing options. Lastly, the government's support for the development of the fintech industry, including CrowdLending, has created a conducive environment for innovation and growth in the market. In conclusion, the CrowdLending (Business) market in Hong Kong is experiencing significant growth and development due to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. As businesses continue to seek alternative financing options, the CrowdLending market is expected to continue its upward trajectory in Hong Kong.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.