In every market there is competition of one sort or another. In the news China for reasons of its own decided to bring Hong Kong into its orbit of influence. This typically means less freedom and more control from China – some of its facial recognition capabilities are amazing to see, terrifying to be in. When China set in motion its desires, Hong Kong had many demonstrations and other countries put out a welcome to firms in China to move operations to their country.
In an article by Alun John, Scott Murdoch and Anshuman Daga of Reuters, countries such as Japan, Australia, Singapore and South Korea have been readying incentives to attract banks and asset managers. The typically incentives include: visa support, streamlining approvals of investment management licences, tax breaks, rent free offices the rule of law and democratic values.
Jason Salim, a Singapore-based analyst at risk consultancy Control Risks believes Singapore is most similar to Hong Kong and is a little higher on the prospects side.
In psychics there is a Newton’s law which says for every action there is corresponding reaction. In political control of any government, all firms have options. If the principals of the firm find their way of life to be changed, they will look for alternatives. Money may keep people, but if the circumstances change, people will find alternatives.
There are more questions than answers, till the next time – to raising questions.