Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Family Office Advisers See Rising Interest in Leaving Hong Kong

Family Office Advisers See Rising Interest in Leaving Hong Kong

Service providers to some of Asia’s wealthiest families say they are fielding a rising number of calls about shifting away from Hong Kong, with some already moving money to Singapore-based banks.

“Projects that were going into Hong Kong, people are now holding back,” said Shanker Iyer, Asia executive chairman at IQ-EQ, which says it has about $450 billion of assets under administration for family offices and other investors.

The company is getting regular calls from clients asking about the logistics of leaving Hong Kong, he said. “People who aren’t in the market already and want to come in, they’re having second thoughts,” with Singapore seen as a much more business-friendly destination, he added.

The shift comes at a critical time for Hong Kong, which has been roiled by months of violent protests that have made investors fearful of direct intervention by Chinese authorities to quell the unrest.


‘Little Typhoon’


Clifford Ng, a managing partner at Zhong Lun Law Firm in Hong Kong, who specializes in advising high net-worth individuals on cross-border transactions and investments and has lived in the city since 1995, said the level of interest in moving assets to Singapore is “unprecedented.”

“We have certainly received a lot of questions regarding the freedom to move money,” he said. “Investors hate uncertainty and Hong Kong is a little typhoon within a much bigger storm of uncertainty. Risk avoidance, in handling other people’s money, drives that money to a less uncertain place.”

With financial services accounting for about one-fifth of Hong Kong’s GDP, any disruption will have a real impact on the economy, which is already slipping as tourists desert the city and retail sales slump.

Hong Kong Is Sinking Into a Recession With No Recovery in Sight

The possibility of Hong Kong’s legal system changing earlier than the scheduled deadline of 2047 is another cause of angst among family offices, according to IQ-EQ Group Executive Chairman Serge Krancenblum.

The city operates a legal system derived from British common law under the One Country, Two Systems principle. A failed attempt to introduce extradition laws that would expose citizens to prosecution in mainland China sparked the protests and the imposition of colonial-era emergency powers have also shaken investor confidence.

How Far Hong Kong’s Emergency Law Can Go (Online Too): QuickTake

“If you’re an investor, even a non-local one with Hong Kong structures as a family office, how can you base your future on a system that may not be there as long as you thought it would be?” Krancenblum said. “This is a very big problem. Investors, and families, care about stability.”

The instability may already be having an impact, with Goldman Sachs Group Inc. estimating that there has been an outflow of Hong Kong dollar deposits of between $3 billion to $4 billion to Singapore.


Hedge Funds


“We’ve seen some of our Hong Kong-based managed clients that have said they want to move their assets from Hong Kong-based banks to Singapore-based banks,” said Steve Knabl, chief operating officer of Swiss-Asia Financial Services Pte, whose platform hosts hedge funds and wealth managers. “So the move is clearly there, especially from private clients.”

While many hedge funds are seeking advice from lawyers, accountants and migration agents, few are actually moving, and Knabl said he didn’t expect an overnight shift in staff from Hong Kong to Singapore.

Eurekahedge Pte data show assets under management by Hong Kong hedge funds reached a record high $92.1 billion in September.

This is partly because the months-long process needed to get a license in Singapore can be a deterrent to moving. Hong Kong also remains a better gateway for hedge funds seeking to profit from mainland China without the downsides of living there.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Russian Research Vessel 'Yantar' Tracked Mapping Europe’s Subsea Cables, Raising Security Alarms
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Tokyo’s Jimbōchō Named World’s Coolest Neighbourhood for 2025
European Officials Fear Trump May Shift Blame for Ukraine War onto EU
The Personality Rights Challenge in India’s AI Era
Italy Considers Freezing Retirement Age at 67 to Avert Scheduled Hike
Italian City to Impose Tax on Visiting Dogs Starting in 2026
Study Finds No Safe Level of Alcohol for Dementia Risk
Trump Says Ukraine Can Fully Restore Borders with NATO Backing
Europe Signals Stronger Support for Taiwan at Major Taipei Defence Show
Germany Weighs Excluding France from Key European Fighter Jet Programme
Cyberattack Disrupts Check-in and Boarding Systems at Major European Airports
Björn Borg Breaks Silence: Memoir Reveals Addiction, Shame and Cancer Battle
When Extremism Hijacks Idealism: How the Baader-Meinhof Gang Emerged and Fell
JWST Data Brings TRAPPIST-1e Closer to Earth-Like Habitability
Trump Orders $100,000 Fee on H-1B Visas and Launches ‘Gold Card’ Immigration Pathway
France’s Looming Budget Crisis and Political Fracture Raise Fears of Becoming Europe’s “Sick Man”
Three Russian MiG-31 Jets Breach Estonian Airspace in ‘Unprecedentedly Brazen’ NATO Incident
European manufacturers against ban on polluting cars: "The industry may collapse"
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
Christian Brueckner Released from German Prison after Serving Unrelated Sentence
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
The conservative right spreads westward: a huge achievement for 'Alternative for Germany' in local elections
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
U.S. and China Agree on Framework to Shift TikTok to American Ownership
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
The New Life of Novak Djokovic
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
France, at an Impasse, Heads Toward Another Government Collapse
×