2. Greater China flows
One of Hong Kong’s major advantages over Singapore is its closeness to mainland and its status as the preferred destination for offshore Chinese wealth. But the latest escalation of political tensions has further boosted Greater China demand for non-Hong Kong booking centers.
In addition to broader instability, Hong Kong’s chief executive recently attempted but failed to pass a new law that would effectively allow criminal suspects to be transferred to mainland China for trial, a red flag for the general public but especially the region’s wealthiest. Although sources note that the Monetary Authority of Singapore (MAS) has discouraged openly exploiting the incident for new business, clients have been proactive.
«We've received increased amount of client inquiries about the Hong Kong situation in the past weeks,» said Lawrence Lua, the deputy head of private banking, DBS, in a recent report.
The risks do not affect just Hong Kong or mainland Chinese clients but also the Taiwanese. In recent years, private banks like UBS Wealth Management have been ramping up their Taiwan coverage out of Singapore to mitigate such risks.
«Investors, businessmen, and wealthy individuals—they love orderliness and rule of law. It is not unreasonable to say that they are exploring alternative locations.»
