According to newswire Bloomberg, New York-based Goldman Sachs estimates that the maximum outflow from Hong Kong to Singapore was between $3bn and $4bn as of the end of August.
Foreign-currency deposits at both domestic and international banks operating in Singapore simultaneously rose to a record S$12.8bn ($9.3bn), according to Monetary Authority of Singapore preliminary data.
The bulk of the increase took place in July and August, when it rose S$5bn, a 64% increase in two months.
As reported by IA, there were strong indicators in July that Hong Kong’s wealthy were moving their cash to the Lion City as protests continued.
However, other wealth managers, such as DBS, Pyrmont Wealth and The Capital Company, previously claimed that there have been no significant outflows from Hong Kong.
The sentiment at the time from sources on the ground was that they had not personally witnessed any clients making significant financial transfers out of the SAR.
But news that one protestor was shot by police on Tuesday is an alarming indicator that the situation is not likely to settle down any time soon.
While volatility can mean opportunity, Hong Kong high net worths seem to increasingly feel that seeking calmer shores is their best bet.
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