Hong Kong has a lot of work to do if it wants to maintain its edge as a destination for mergers and acquisitions activity and stave off competition from Singapore, experts say.
Since the 1997 handover from British to Chinese rule, the value of deals involving Hong Kong companies has risen from US$31.06 billion in 1997 to US$151.59 billion in 2016, according to Thomson Reuters data.
In order to maintain that momentum, the city must become more adept at developing new industries such as financial technology that can attract fresh investment to drive deal flow, according to Tracy Wut, M&A partner at law firm Baker McKenzie.
Singapore has taken a lead in developing new sectors, particularly in technology, by creating a vibrant start-up ecosystem with ample funding and institutional support from both the public and private sectors.
“Singapore is home to many start-ups and technology companies. For overseas companies or mainland companies wanting to conduct M&A deals in the fintech and technology sectors, Singapore has become the natural choice,” said Wut.