Hong Kong’s credit card market cools as jobless rate hits three-year high

Gen Z demand also saw a decline during the quarter.

Hong Kong’s credit card market cooled in Q2 2025 as the unemployment rate rose to its highest level in three years and with Gen Z demand dropping.

The number of new credit card accounts being opened declined by 23.5% year-on-year (YoY) in the second quarter of 2025, according to TransUnion.

This marks the most significant drop in new credit card originations since the COVID-19 pandemic, TransUnion said in its industry insights report for Hong Kong released on 4 December 2025.

Less Gen Zers opened new credit card accounts during the quarter, with an 11.1% YoY decline in originations. For years, the Gen Z cohort saw significant card growth as their over-eighteen population numbers increased, said TransUnion.

Originations amongst millennials declined by 25.8% YoY, and for Gen X originations were down 26.1% You.

The unemployment rate in Hong Kong rose to its highest level since August 2022, at 3.9%, in Q3 2025. The labour market was affected by economic restructuring and weaker hiring in the construction, finance, and social sectors, according to TransUnion, based on data from the Census & Statistics Department (C&SD).

Graduates entering the market are reportedly the most affected, with 8% of those aged 20-29 unemployed, the highest level in 2025, said TransUnion, citing data from Trading Economics.