U.S.-based investment advice platform Motley Fool will exit from Hong Kong as civil unrest, a national security law and U.S.-China tensions have made placed the hub in «the eye of a geopolitical storm».
According to investment advice provider Motley Fool, it entered the Hong Kong market two years ago for the very same reasons that many other foreign firms pick the city: «freewheeling capital flows, transparency of information and Western Rule of Law to access the China market».
«Then, in mid-2019, the outbreak of protest against the Extradition Bill led Hong Kong into a pro-long political struggle,» said Motley Fool Hong Kong’s lead analyst Hayes Chan in a statement.
«The recent introduction of a Hong Kong National Security law by Beijing authorities has placed a fresh international focus on Hong Kong’s unique 'One Country, Two Systems' model and its future outlook. Moreover, the decoupling trend between the US and China is putting this financial hub in the eye of a geopolitical storm.»
5-Year Outlook: No Visibility
As a result of the new environment and increased uncertainty, Motley Fool said it was difficult to «make predictable decisions to grow» over the next three to five years.
«Thus, we want to focus on and put resources behind ideas that can meaningfully, efficiently, and profitably scale our business around the world,» Chan said.
Last Advice to Hong Kongers: Diversify
In its parting statement, Motley Fool also included one last piece of advice for Hong Kongers: to diversify investments outside of local and mainland Chinese equities.
«I’ve written a couple of articles about the risk of over-concentration portfolios on Hong Kong and China stocks among Hong Kong investors,» Chan added, suggesting investors join its other investment communities in the U.S., the U.K., Canada, Australia, Germany and Japan.
«I hope that our paths will cross again, and wish you all the best for the future.»
