Hong Kong lenders tread carefully amid mixed recovery signs, TransUnion says

Core Insights - Hong Kong lenders are cautiously easing household lending in response to a recent rate cut by the Hong Kong Monetary Authority, which lowered its base rate to 4.25% in October, marking the second decrease this year [1][2] Economic Indicators - The unemployment rate in Hong Kong was 3.8% at the end of October, a slight decrease from 3.9% the previous month, but still high compared to pre-pandemic levels [4] - Wage growth has slowed from 3.5% in 2024 to 2.5% in the current year, with average salaries declining since the onset of the US-China trade war in April [5] Consumer Behavior - Retail sales have rebounded since May, with a 5.9% increase in September, driven by increased tourism and improved local consumption [6] - Despite the overall increase in retail sales, consumer spending remains cautious, with significant increases in electrical goods (31%) and alcoholic drinks and tobacco (16%), while spending on furniture (-17%) and clothing and footwear (-6%) has declined [7]