Major financial institutions are not just looking at Frankfurt and Paris, Asian financial hubs are now gaining traction as relocation options.
To date several Japanese banks have firmed plans to continue their European business with Frankfurt being the most popular location. London's pre-eminance as the preferred global booking hub has been diluted since the Brexit vote and pressure is building as other financial centres smell blood.
According to a report in the Financial Times (behind paywall) Morgan Stanley is laying the groundwork for a new Hong Kong «booking entity» to handle the trades of Asia-Pacific (APAC) clients, whose activity makes up a large portion of its London-based markets business.
Hong Kong Prepares
Other investment banks are also said to be talking to the Hong Kong Monetary Authority about handling more of their APAC business in the region. The regulator told the Financial Times it was «gearing up» to handle banks’ interest in moving the booking and management of their Asian risks to Hong Kong.
Singapore has not been mentioned as a potential alternative though some financial institutions may consider the lion-city rather than Hong Kong with its substantially lower housing costs and better schooling.
