Hong Kong and Singapore compete for dominance in Asian asset management

Hong Kong and Singapore are intensifying their competition to become Asia’s premier financial hub, specifically targeting high-level asset management talent. Together, the two cities manage nearly $10 trillion in assets, with Singapore holding approximately $5.5 trillion and Hong Kong holding $4.5 trillion.

To attract international fund managers, Hong Kong has proposed legislation to expand tax exemptions on carried interest, a significant portion of compensation for private equity and hedge fund professionals. In response, the Monetary Authority of Singapore (MAS) has introduced measures to enhance the city-state’s attractiveness through fiscal and migratory incentives.

This rivalry is accompanied by a shifting demographic in Hong Kong’s financial sector. The demand for Western professionals is declining as the client base shifts toward mainland China. Recent data shows a surge in highly qualified professionals from mainland China arriving in Hong Kong via talent visa programs, with arrivals increasing from 19,000 in 2016 to approximately 90,000 in 2025. Consequently, local firms are increasingly prioritizing candidates with Mandarin fluency and deep cultural understanding of the Chinese market over traditional Western expertise.