Singapore, Tokyo And Shanghai To Replace HK As Asia's Finance Hub

Hong Kong’s COVID quarantines and new curbs on civil liberties have damaged the former British colony’s image as “Asia’s World City,” sparked an expat exodus, and stoked rival cities’ ambitions of replacing Hong Kong as the region’s preeminent financial hub, Clay Chandler reported for Fortune magazine recently.

Photo Insert: Singapore could be a top candidate to become a financial hub as it has ironclad guarantees to protect investors, even dirty money, even as its being resource poor threatens its water and food supply.

But dethroning Hong Kong as Asia’s financial capital won’t be easy. None of the three cities most frequently mentioned as potential alternatives—Singapore, Tokyo, and Shanghai—can match Hong Kong’s unique combination of cultural and commercial attributes.

All, for different reasons, face daunting challenges in attracting global talent.

Already, about 40% of expats have left Hong Kong as China imposed its National Security Law on the territory that it had guaranteed would enjoy its freewheeling lifestyle and political system until 2047.

The treaty it signed with the UK has been thrown into the dust bin. Japan, the US and other countries have also encouraged their citizens to leave as Beijing constricted civil liberties and has even ordered teachers to memorize Xi Jinping’s speeches.

Singapore could be a top candidate to become a financial hub as it has ironclad guarantees to protect investors, even dirty money, even as its being resource poor threatens its water and food supply. A number of regional business headquarters have already transferred to Singapore.

Tokyo may be a good choice but it has to compete with the perks offered by Singapore and improve the business environment. Shanghai will be good as China’s financial hub but it will offer a far worse environment than Hong Kong. It will be like jumping from the frying pan into the fire.

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