Singapore is top pick of financial firms planning to leave Hong Kong: report

Tokyo, Sydney, Taiwan, and South Korea are vying to benefit from Hong Kong's woes.

Singapore is set to be the biggest winner in the possible exodus of banks and asset managers in Hong Kong that are worried about the new security law imposed by China, reports Reuters.

Whilst Japan, Australia and some other nations are readying incentives to attract these firms, finance sector experts said that if these firms did decide to move, it will be to the Lion City.

High taxes and costs, bloated bureaucracies and cultural differences in some of these APAC nations present formidable challenges for the Hong Kong financial institutions to relocate even partially, whilst Singapore’s similarities to Hong Kong give it an advantage, they said.

Lawyers and advisers say Singapore is the most likely beneficiary of any relocation, thanks to its corporate tax rate of 17%, a business-friendly environment, and its standing as a financial centre.

Hong Kong’s financial regulators said last week they had been approached by institutions concerned about the law, but they said it would not affect operations.

Nonetheless, rivals hope to benefit from the concerns. Officials from Australia, Japan, Taiwan and South Korea have all signaled their interest to attract business from Hong Kong.

Here’s more from Reuters.