Nova Credit announces an estimated bankruptcy rate of 0.185% in the second quarter of 2022

HONG KONG, June 29, 2022 /PRNewswire/ — According to the latest macroeconomic data (as of June 1, 2022) and the unemployment rate (provisional figures) published on June 17, 2022, NOVA announces the latest estimated bankruptcy rate for the next 12 months at 0.185%. Based on the population of HK 5.6 million eligible for credit, the estimated number of bankruptcies is around 10,472, or just over 7,197, the number of bankruptcy filings in 2021 recorded by the Office of the Official Receiver throughout the year.

The calculation of this estimated bankruptcy rate is based on the latest macroeconomic data from recent months, during the fifth wave of the epidemic in hong kongtwo important indicators – the unemployment rate and gross domestic product (GDP) were significantly affected.

Undoubtedly, the tightening of anti-epidemic measures has seriously impacted the local economy. The local economy deteriorated significantly in the first quarter of 2022. GDP in the first quarter of 2022 fell by 9.77% compared to the fourth quarter of 2021. The latest figure is HKD 6,726.17 million, was down 4.0% year-on-year. Personal consumption expenditure (PCE), an important consumption factor for GDP, also fell 13.73% quarter-on-quarter.

Meanwhile, the unemployment rate drops from 3.9% where is the lowest point in the last six months in November 2021January 2022 at 5.4% in February – April 2022then drop slightly to 5.1% in the last month of March-May 2022.

It is expected that the economy in hong kong to resume normality in a stable epidemic situation while continuing to adjust social distancing measures in a timely manner according to Paul Chanthe financial secretary of hong kongtold a Legislative Council panel on June 6, 2022.

We will continuously monitor the macroeconomic environment and its impact on the number of bankruptcy cases accordingly, leverage innovative technology to share valuable findings with the banking industry to make more accurate and faster business decisions .

About Nova Credit

Nova Credit Limited is a Credit Reference Agency (CRA) established under the Personal Data (Privacy) Ordinance of hong kong in 2017. Nova Credit is one of the selected CRAs that participate in the Multiple Credit Reference Agency Model (“MCRA Model”) launched by the Hong Kong Banking Association, Association of Restricted License Banks and Depository Companies of Hong Kong and Hong Kong SAR Approved Lenders Association Ltd and backed by the Hong Kong Monetary Authority. Nova Credit aims to provide an innovative credit reference service to consumers and small and medium businesses through emerging high-end technology and professional credit reference expertise. In addition, Nova Credit acts as a Fintech enabler for the financial sector, so that financial institutions can fully benefit from cutting-edge credit and risk technology and intelligent data analytics. Nova Credit is willing to take credit bureau service in hong kong to the next level by contributing to the development of the Greater Bay Area and connecting other credit rating agencies and financial infrastructures in the region for legitimate and transparent access to financial data. For more details, please visit www.nova-credit.com.

Media Contact

Nova Credit Limited
Sheeta Leung
Mobile/ WhatsApp: (852) 6998 2712
Email: [email protected]

SOURCE Nova Credit Limited