Financial Firms Are Flocking to Singapore But Hong Kong Keeps Its Edge

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Financial Firms Are Flocking to Singapore But Hong Kong Keeps Its Edge
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The Hong Kong cityscape behind a financial display board.

he boldfaced names in money management can’t get enough of Singapore these days. Billionaire Ray Dalio has set up shop to manage some of his personal fortune there. Ken Griffin and Steve Cohen are on hiring sprees.to be one of the key locales through which the world’s money flows. And as a haven for wealth and a hub for asset managers, the “Switzerland of Asia” has been notching up enough wins to shed any regional asterisk.

Some of the world’s largest money managers have staffed up in Singapore, including Marshall Wace, Griffin’s Citadel ­Enterprise Americas and D.E. Shaw. Billionaire Cohen’s Point72 Asset ­Management has expanded its Singapore team more than 50%, to 100 people. Overall, hedge fund assets grew 30% in 2021, to S$257 billion —making for the biggest dollar increase on record, according to the most recent data from the Monetary Authority of Singapore, the city-state’s central bank.

In Hong Kong, bankers and investors are becoming increasingly uneasy about political crackdowns by China, with worries made worse by rising tensions with the US. Hong Kong just lost its five-decade-long position as the world’s freest economy to Singapore, according to the most recent ranking compiled by Canadian think tank Fraser Institute, which cited more restrictive regulations and the erosion of judicial independence in the Chinese city.

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