Singapore has benefited from demand from hedge funds seeking an alternative hub in the region after political unrest hit Hong Kong in 2019 followed by persistent Covid curbs.
The number of hedge funds with an existing presence in Hong Kong that expanded to Singapore reached 16 between the start of 2019 and end-2021, according to public registry data, marking a more than three-fold increase compared to the previous three-year period.
The sharpest increase occurred in the second half of 2019 during the peak of political unrest in Hong Kong.
Although the number of new hedge funds opening slowed since 2020, asset growth persists. In 2021, hedge fund assets under management in the city-state climbed 30 percent to S$257 billion ($188 billion), according to data from the Monetary Authority of Singapore, marking the largest dollar-denominated increase on record.
Hong Kong Still Strong
Despite Singapore’s rise, including a shift in investment strategies away from China towards India and Southeast Asia, Hong Kong remains a dominant hub for hedge funds.
According to Preqin data, Hong Kong is home to almost 44 percent of hedge fund managers operating in the region. And local authorities are also making efforts to help the city regain confidence as a financial hub with a star-studded banking summit in November and some easing of Covid restrictions.
