Hong Kong’s crown slips as Singapore takes over

As international sentiment sours on Hong Kong, other Asian financial hubs – primarily Singapore – are snapping up business.

Marina Bay Sands in Singapore
Singapore boasts a business-friendly environment and predictable laws
(Image credit: © Alamy)

“Since Hong Kong’s return to the motherland in 1997, its financial market has evolved… with remarkable progress made in the banking system, capital market, as well as the foreign exchange market,” says Xinhua, China’s state news agency. Since July 1997 the value of the local stockmarket has grown from HK$4.6trn (£490bn) to HK$38trn (£4.04trn) today. The city was ranked third in the latest edition of the Global Financial Centres Index, behind only New York and London.

Yet international business is souring on Hong Kong, says the Financial Times. The territory still has strengths: “a convertible currency, a bustling port and mechanisms that allow international investors to gain exposure to the Chinese market”. But byzantine Covid-19 rules and the erosion of the rule of law mean that “since the start of the year, more than 130,000 people have left”. In the future “Hong Kong will be less international and closer to China, both economically and culturally”.

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Markets editor

Alex is an investment writer who has been contributing to MoneyWeek since 2015. He has been the magazine’s markets editor since 2019. 

Alex has a passion for demystifying the often arcane world of finance for a general readership. While financial media tends to focus compulsively on the latest trend, the best opportunities can lie forgotten elsewhere. 

He is especially interested in European equities – where his fluent French helps him to cover the continent’s largest bourse – and emerging markets, where his experience living in Beijing, and conversational Chinese, prove useful. 

Hailing from Leeds, he studied Philosophy, Politics and Economics at the University of Oxford. He also holds a Master of Public Health from the University of Manchester.