An Offshore Safe Haven
Recent protests in Hong Kong in response to a proposed law that would allow people to be extradited to Mainland China for trial have meant that the major offshore investment destination is experiencing political unease, causing a lack of security and stability for high net worth investors whom choose to channel their fortunes to the south-eastern city-state.
In particular, Chinese High Net Worth (HNW) investors, one of the major sources of business for private wealth managers in Hong Kong, will likely look for new homes for their fortunes. Cultural and geographic ties mean that Hong Kong is a popular booking centre for Chinese investors. However, should the extradition bill become reality, it will be possible for Mainland authorities to request Hong Kong courts to freeze and confiscate funds. While it is unlikely that established investors in the Hong Kong market will shift as a result of the protests, new HNW investors looking for a stable offshore financial centre will think twice.