Hedge Funds and Asset Managers Are Shifting Back to Hong Kong — What's Driving the Move

A growing number of hedge fund firms and asset managers are looking to shift operations from Singapore to Hong Kong, according to Bloomberg.

The Alternative Investment Management Association (AIMA) wrote to Singapore’s central bank flagging that some members are already in conversations with portfolio managers and staff about relocating within months. One leading global asset manager has seen Singapore headcount drop in recent years while Hong Kong headcount has grown significantly — a complete reversal from a few years ago when Singapore was its regional hub.

Bloomberg reports that Singapore is now considering cutting fund manager taxes from 17% to 10% to maintain competitiveness. The Monetary Authority of Singapore is under pressure to act — and they’re reacting because they’re losing ground.

For anyone setting up a regional hub, this matters. The narrative that Singapore is the clear winner and Hong Kong is fading doesn’t match what’s actually happening. Cost structures are shifting. Talent is moving. The direction of travel is changing.

What’s driving this? Singapore has been raising the cost of doing business — higher salaries, tighter compliance, more bureaucracy. Hong Kong has been doing the opposite. The gap is closing. And when costs converge, other factors start to matter more — proximity to China, GBA access, and Hong Kong’s established professional services ecosystem.

If you’re deciding between these two markets right now, the old assumptions need revisiting. The gap isn’t what it used to be.