The Implementation of SME Financing Guarantees in Hong Kong: A Review of Optimization Pathways

Abstract

This study focuses on optimizing the implementation of the Hong Kong SME Financing Guarantee Scheme. It systematically reviews the theoretical basis of information asymmetry and moral hazard issues in financing guarantees, and traces the historical evolution of the scheme from its inception in 2001 to its full launch in 2011, undergoing multiple product upgrades and term extensions. It compares the similarities and differences between Japan's large-scale model, the US risk-sharing mechanism, the EU's mutual guarantee, and South Korea's high coverage experience. Based on this, it analyzes the current operational status of the risk-sharing mechanism operated by the Hong Kong Mortgage and Securities Insurance Company Limited, its industry-wide effectiveness differences, approval efficiency, and insufficient data sharing, identifying key problems and their causes. The study proposes an optimization path centered on the construction of an AI-powered risk control platform, differentiated guarantee rates and incentive-compatible design, interconnection of commercial data exchange platforms, and full-cycle performance monitoring. The study concludes that the Hong Kong Financing Guarantee Scheme has achieved significant results in expanding SME credit supply and stabilizing the economy. However, its implementation still needs to be enhanced through technological empowerment and precise governance to achieve inclusiveness and efficiency, providing strong support for economic transformation in the post-pandemic era. This study has significant theoretical and policy practical value.