Singapore Coming for Hong Kong’s Hedge Fund Crown

The rise of hedge funds in #singapore with a 3x spike in numbers in 3 years and over 16 companies with Hong Kong offices now also operating in Singapore, begs that question. Some of them include honchos like #citadel D.E. Shaw & Co, Marshall Wace and Ovata Capital Management.

Should Hong Kong worry about this? What does it mean for the job markets and aspirants on both sides 🤔🤔

Given that Hong Kong still boasts having 44% of hedge funds conducting business in this region, there isn’t a major threat. However, Singapore's been increasingly attractive, especially to hedge funds that are focused on countries other than China.

👉 Its growth in this area is partly thanks to a treaty with India and the increasing number of HNW families starting up offices in the country, resulting in additional capital that hedge funds can work with. 

👉 It' viewed as a bridge to other fast-growing nations such as Indonesia and Vietnam. 

👉 Fewer COVID travel restrictions combined with more stable political environment prompted more hedge funds to set shop in SG which meant a greater safety net.

Although the number of hedge funds appearing in Singapore slowed in 2020, overall assets under management grew to US$188 billion in 2021. Also a greater emphasis on the emerging markets spells increasing business activities across SEA with India being especially attractive.

Apart from fewer restrictions, Singapore’s better access to talent that is familiar with SEA markets plus government-led incentives for businesses make it attractive. The Variable Capital Company (VCC) corporate structure it offers (initiated in 2020), aids hedge funds in adopting investment structures with greater flexibility. 

So firms like Pinpoint Asset Management that previously focused only on China, launched their Singapore office to tap into the rest of Asia. Ovata’s SG expansion aims to tap into India and SEA gaining traction in the coming years.

💡 This is indeed promising for #singaporean students gunning for entry-level roles and #internships in the region 💡

Having said all that, Hong Kong is not going down without a fight 💪💪 Looking to hold onto its title as a finance hub, it recently scrapped Covid travel restrictions and even held a summit in November featuring high-level executives from major banks. Hong Kong also beats Singapore in terms of staffing. Marshall Wace for example, has ~50 staff in Hong Kong as compared to 20 in Singapore.

What does this mean for job hunters in both areas?

✅ Those based in Hong Kong need not panic, as China remains an attractive market with restrictions to be end soon. As such, Hong Kong will remain a key player

✅ As hedge funds look to explore SEA #singaporejobs hold a better outlook

✅ Keep upskilling and follow both markets to strategize your applications

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