News that money is leaving the special administrative region in such immense sums will do little to allay the concerns of those still reeling from heightened violence on the 70th anniversary of the People’s Republic of China.
According to newswire Bloomberg, New York-based Goldman Sachs estimates that the maximum outflow from Hong Kong to Singapore was between $3bn and $4bn (£3.3bn, €3.7bn) as of the end of August.
Foreign-currency deposits at both domestic and international banks operating in Singapore simultaneously rose to a record S$12.8bn (£7.5bn, $9.3bn, €8.4bn), according to Monetary Authority of Singapore preliminary data.
The bulk of the increase took place in July and August, when it rose S$5bn, a 64% increase in two months.
Growing violence
As reported by International Adviser, there were strong indicators in July that Hong Kong’s wealthy were moving their cash to the Lion City as protests continued.
The sentiment at the time from sources on the ground was that they had not personally witnessed any clients making significant financial transfers out of the SAR.
But news that one protestor was shot by police on Tuesday is an alarming indicator that the situation is not likely to settle down any time soon.
While volatility can mean opportunity, Hong Kong high net worths seem to increasingly feel that seeking calmer shores is their best bet.
