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Anonymous

09 Oct 2020

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What are your thoughts on Hong Kong as a financial hub?

Hong Kong also always seem quite politically unstable? Are there any more 'stable' HK stocks then?

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Not too sure about HK stocks but HK is a really strong financial hub. HK is seen as the gateway to China and we all know the scale and size of China. Companies in China looking to raise equity or debt will look to HK investors/banks in HK for funding. Wealth management clients in China would prefer using HK over SG due to proximity and language. Most financial institutions will have their Asia headquarters in HK (servicing HK, China, Taiwan, even Korea) and a SEA hub in Singapore (serving SEA countries - SG, Malaysia, Vietnam, Thailand etc). In all, HK will unfortunately always be larger than SG given more headcount just closer to China.

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