Japanese financial conglomerate SBI Holdings is planning to exit Hong Kong over uncertainty caused by Beijing's implementation of the national security law.
SBI chief executive Kitao Yoshitaka said the firm plans to withdraw from the city over concerns about the national security law and its impact on the business environment.
«[W]ithout freedom, there is no financial business,» according to Kitao in a «Financial Times» report, underlining similar fears amongst Japanese peers.
SBI, which is the owner of Japan’s largest online brokerage, is considering Singapore or Shanghai as an alternative for its 100-strong unit.
Japanese Review
According to Kitao, Hong Kong was «not a good place for financial institutions» with other Japanese firms «very much afraid» of the developments in the city and increasingly reconsidering the scale of their operations there.
«If I want to do business in China, I would rather have an office in Beijing or Shanghai or somewhere,» Kitao said.
SBI first considered an exit from Hong Kong in favor of accelerated mainland expansion in September last year, highlighting its concerns about «people getting arrested one after another».
Hub Shuffles
SBI is also reviewing its London office due to post-Brexit conditions, adding that the city is beginning to experience capital outflows though it «all be okay». Potential alternatives named include Amsterdam, Luxembourg and Frankfurt.
He also suggested the potential for the rise of Osaka as a possible global financial hub, suggesting a tie-up between London and the Osaka Exchange to take advantage of extended trading from the two timezones.
