Deputy Chief Economist

Sharmila Whelan

Independent and original Asian investment research

Aletheia Capital

Aletheia Capital (HK) Ltd. (previously known as Asianomics) combines the extensive knowledge of its experienced team with technology and regulatory changes to disrupt Global Markets business in Asia. The firm is completely independent with no conflicts of interest either on Investment Banking advisory or Capital Markets execution.

Macroeconomics

<p style="text-align: justify;"><strong>We are underweight Hong Kong in our relative regional portfolio this year. The 2019 political crisis was exacting a heavy price on the economy and businesses even before the island was hit by the coronavirus pandemic. In this note we look at the longer-term fallout of both for Hong Kong and ask can and will Singapore become Asia’s number one financial centre? Also how China’s thinking is changing with regards to Hong Kong. We do not see Singapore replacing Hong Kong.  Hong Kong’s scale, liquidity, track record and experience as an international financial centre argue against it. It is plausible though that in the future Hong Kong will benefit less from the upside when China booms. </strong></p>

We are underweight Hong Kong in our relative regional portfolio this year. The 2019 political crisis was exacting a heavy price on the economy and businesses even before the island was hit by the coronavirus pandemic. In this note we look at the longer-term fallout of both for Hong Kong and ask can and will Singapore become Asia’s number one financial centre? Also how China’s thinking is changing with regards to Hong Kong. We do not see Singapore replacing Hong Kong.  Hong Kong’s scale, liquidity, track record and experience as an international financial centre argue against it. It is plausible though that in the future Hong Kong will benefit less from the upside when China booms. 

FTSE Straits Times REIT Index (FSTREI INDEX)

Hong Kong - Fallout