Capital flows leaving Hong Kong for Canada reached record-high levels in 2020 amid increasing political uncertainty in the financial hub.
Capital flows from Hong Kong to Canada reached C$43.6 billion ($34.8 billion), according to Canadian anti-money laundering agency FINTRAC.
This represents a 46 percent and 10 percent increase compared to 2016 and 2019, respectively.
FINTRAC’s figure only represents a portion of flows as it does not capture transfers of less than C$10,000 as well as those involving non-traditional assets like cryptocurrencies.
National Security Law Trigger
According to a «Reuters» report citing Canadian lender Equitable Bank, deposits surged just after the controversial national security law was introduced in June 2020.
The move also prompted the Canadian government to announce immigration measures for Hong Kongers, particularly for young talent. In 2020, Canadian visa applications from Hong Kong – excluding visitor visas – rose 10 percent to 8,121.
Despite the outflows, Hong Kong’s total despots still grew in 2020 by 5.4 percent to HK$14.5 trillion ($1.9 trillion), according to the Hong Kong Monetary Authority.
