Will reopened Hong Kong triumph over rival Singapore? Here’s 5 ways it could

Analysts say the mainland China factor will help lift Hong Kong’s economy and population, as Singapore’s reopening benefits begin to fade

Tipped to stay ahead of Singapore in the equity and dollar-bond business, Hong Kong also offers finance workers more lucrative salaries and bonuses

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Cross-border travel with mainland China is expected to boost Hong Kong’s population, give the city a wealth injection and help lift its economy out of the doldrums. Photo: Shutterstock

Published: 2:02pm, 7 Feb 2023

With the full reopening of Hong Kong’s border with mainland China on Monday, and the city dropping vaccine requirements for all visitors, the campaign to rebuild its battered economy is full speed ahead.

But can the city reclaim its crown as the region’s top finance hub from Singapore, whose earlier reopening from Covid-19 gave it a significant head start?

Cross-border travel with the mainland is expected to boost Hong Kong’s population, give the city a wealth injection and help lift its economy out of the doldrums. Yet Singapore’s tension-free ties with the West and corporate-tax incentives remain very attractive.

Here are five areas in which Hong Kong could triumph over rival Singapore, according to Bloomberg analysts.

A woman walks past a Hong Kong Stock Exchange sign. The city’s IPOs by deal value could triple to about US$40 billion in 2023 driven by China’s reopening. Photo: AFP

1. Stock market

Hong Kong could keep capturing far more equity business than Singapore in the next five years due to the mainland China factor. The city’s IPOs by deal value could triple to about US$40 billion in 2023 driven by China’s reopening, its policy shift toward growth and pent-up demand for capital.

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