Singapore and Hong Kong are in fierce competition to attract the second-generation wealthy from China who have disposed of their North American assets following the U.S.-China conflict.
On the 22nd, Nikkei Asia reported, "Major Singapore banks like UOB, DBS, and OCBC are expanding their financial boot camps to target the children of wealthy Chinese."
The financial boot camp is a type of "short-term wealthy study abroad" program that combines education and networking. The banks directly provide investment training and unique networking opportunities for VVIPs.
In 2023, UOB operated a financial boot camp program in Hong Kong for five days. This program involved Porsche Hong Kong distributor Jepson Motors supporting meetings among participants. It is a strategy aimed at the tastes of wealthy Chinese heirs who prioritize global asset management and personal networks over loyalty to the Communist Party or state institutions.
According to a McKinsey report, the amount of newly influxed personal assets from the Chinese region into Singapore in 2023 reached $400 billion (approximately 550 won).
However, after the money laundering scandal involving Citigroup and Credit Suisse that same year, many wealthy individuals shifted their focus to Hong Kong as regulations relating to asset management tightened.
Hong Kong tempts with "the re-circulation of wealth." Recently, Hong Kong has emerged as a global family office (FO) hub. Family offices are private investment companies established to manage substantial amounts held by so-called "super-rich" individuals. They primarily provide comprehensive asset management services, including legal, tax, and succession planning, to ultra-high-net-worth individuals.
According to global consulting firm Deloitte, there were more than 2,700 family offices operating in Hong Kong as of last year, roughly double that of Singapore, which has 1,400.
Bloomberg, citing experts, reported, "Hong Kong has tens of thousands of professionals deeply rooted who have been providing various services to the wealthy for generations."
The two cities are locked in a fierce competition for the title of the top financial hub in Asia. According to the Global Financial Centers Index (GFCI), Singapore seized the title of Asia's number one financial hub from Hong Kong in 2022. In 2023, Hong Kong regained the top spot.
In the 2024 rankings announced last March, Hong Kong ranked third in the world after New York, U.S., and London, U.K., and first in Asia. Singapore was ranked fourth in the world. The evaluating panel noted that Hong Kong leveraged closeness to capital linked with China, while Singapore emphasized political stability and quality of life.
The competitive landscape between the two cities has intensified further since the second term of the Trump administration. As U.S.-China tensions have deepened, many wealthy young Chinese have returned home after studying in the United States. The number of overseas Chinese graduates returning in 2022 increased by 8.6% compared to 2021. According to McKinsey, the funds they are expected to inherit by 2030 are estimated to be 210 trillion won.
The Singapore Straits Times noted, "There are concerns about a slowdown in the Chinese economy, but high-net-worth individuals in the mainland are instead strengthening their overseas diversified investments," adding, "In a situation where competition for securing funds is intensifying globally, young Chinese heirs with abundant capital cannot ignore this attractive market."