While nationalist sentiments are reportedly driving mainland Chinese to support the security law, they are simultaneously considering alternative offshore hubs due to fear that Beijing would track and seize their assets.
«Chinese [high net worth individuals] like the law from the perspective of their love for the Chinese flag, but not from their asset protection perspective,» according to a «Reuters» report citing an unnamed banker.
Singapore has been the natural alternative offshore booking center due to close vicinity. Another relationship manager from a European bank said that one Chinese client bought five apartments in the city-state this week via a newly set up family office.
«Singapore has been on their radar for a while now, but Hong Kong has been the default booking center for them,» said the unnamed Singapore-based private bank.
Traditional Offshore Hubs
Singapore aside, various other sources have suggested increasing interest in traditional booking centers like London and Switzerland.
The growing demand for a booking center shift has already led some wealth managers to seek Mandarin-speaking talents in locations like Singapore and Switzerland, the report said citing executive search consultants.
Public Seizures
«China has previously targeted mainland citizens in Hong Kong, mostly as part of corruption investigations, but there hasn't been a large public seizure of assets in the city,» the report continued, citing a private banker from a large wealth manager who believes capital outflows will undergo more tedious processes after the security law is implemented.
Hong Kong is home to over $1 trillion in private wealth and half is from mainland individuals parking assets offshore.
