Private bankers and repair providers interviewed for this text requested anonymity because the knowledge they provided is private.
In April, the Monetary Authority of Singapore introduced a digital platform for sharing customer information to combat money laundering. Since then, the Hong Kong-based service provider said it had received greater than 15 inquiries from wealthy Chinese trying to relocate or arrange family offices in the town. Half of those inquiries have already translated into actual business, it said.
“For many mainland billionaires, because they don’t like arbitrary government intervention, government checks or threats to their personal wealth, that’s why they wanted to get their money out of China,” said Zhiwu Chen, a finance professor on the University of Hong Kong. “If Singapore had the same level of control and tighter regulation as mainland China, why would they want to go there?”
Chen said he knows of billionaires who’ve “warmed up” to moving more of their family office business to Hong Kong as their enthusiasm for Singapore has waned.
In Hong Kong, business at China units in private banks has picked up pace, while growth at the identical groups in Singapore has slowed, meaning less money is flowing into Singapore, two senior private bankers said.
“Despite the political changes in Hong Kong and the challenges they have brought, there are still important reasons for wealth owners and businesses to develop and maintain links with Hong Kong,” said Philip Marcovici, who advises families and financial institutions world wide on wealth and taxation matters.
Hong Kong remains to be a very good place for business people
Many of his friends have been anxious in regards to the future direction of Chinese government policy through the COVID pandemic and have sought residence elsewhere, searching for more neutral ground amid rising geopolitical tensions. While there’s a narrative that Hong Kong is becoming more like mainland China, he says it stays more open, especially relating to capital flows.
“Hong Kong is still a good place for business people,” he said, especially “if you want to travel a lot or move your money around freely.”
Revenue in Hong Kong has already grown by double digits this 12 months, driven by Chinese clients, based on two senior private bankers. Most clients have assets of between $5 million and $10 million and are usually not within the ultra-rich category, one other private banker said.
But Chinese money that had been heading to Singapore is now heading to Hong Kong, one other senior banker said. That’s supported by data including sales of insurance products popular with wealthy mainland Chinese, which rose 63 percent to HK$15.6 billion in the primary quarter compared with the identical period in 2023.
But revelations about Singapore’s money-laundering scandal are also raising concerns in Hong Kong that some newcomers have something to cover.
The scheme, which offers residency to individuals who invest HK$30 million in Hong Kong, has attracted greater than 250 applications because it was launched in March through the tip of May. Almost 200 of those are from Guinea-Bissau and Vanuatu, countries where cash-for-residence schemes have been utilized by financial criminals, based on official figures.
Despite a difficult past decade, Hong Kong remains to be one among the world’s millionaire hubs
Chinese nationals with passports from Vanuatu, St. Kitts and Nevis and Turkey were amongst those convicted within the Singapore money-laundering scandal. “This raises questions about money laundering,” said Alicia Garcia Herrero, chief Asia-Pacific economist at Natixis SA.
Hong Kong Finance Secretary Chan wrote in a blog post in July that greater than 340 applications for residency have been received because the scheme was launched and if approved, greater than HK$10 billion is more likely to flow into Hong Kong.
Singapore stays a preferred destination for millionaire migrants, and is predicted to welcome 3,500 net millionaires this 12 months, the third-highest on the planet, based on Henley & Partners.
But Hong Kong’s millionaire population is predicted to finally rebound after losing about 500 people to migration in 2023, based on Andrew Amoils, head of research at New World Wealth, a research partner with Henley.
“Despite the difficult past decade, Hong Kong is still one of the world’s millionaire hubs,” Amoils said. “There’s definitely a change happening there,” he said.
*Name only on the request of the person giving the interview
