Amid liquidity challenges, affluent individuals in Hong Kong and mainland China are increasingly utilising private lending services, using stocks as collateral due to the sluggish recovery of public capital markets and ongoing property market difficulties. This trend is driven by ultra-high-net-worth individuals and distressed real estate developers who are turning to equity-backed financing as traditional banks maintain stringent lending criteria. The private credit market in the Asia-Pacific has grown significantly, reaching at least USD124bn in 2023. Private lenders like Equities First Holdings report a surge in transactions, with China accounting for about 65% of their Asia-Pacific loan activity. The firm has executed 45 deals totaling around USD300m in the first seven months of this year, reflecting a substantial increase in demand for stock-collateralized loans.