Singapore — Because of the ongoing political unrest, are the rich folks of Hong Kong really flocking to Singapore? DBS claims otherwise.
In an interview with CNBC, DBS chief executive Piyush Gupta stated that news of fund flows from Hong Kong to Singapore are “overstated” and such transactions only occur “at the margin.”
Gupta added that there is no “big movement of money from Hong Kong to Singapore.”
“In my experience, these big shifts don’t happen unless there’s a massive regime change which we don’t foresee happening in Hong Kong,” he said.
Earlier reports stated that millionaires from Hong Kong rushed to Singapore in a panic to transfer their assets. Wealth managers and private bankers in Singapore have been receiving gradually increasing number of inquiries from Hong Kong investors since the extradition bill issue erupted.
Read: Hong Kong millionaires rush to move their assets to Singapore
Singapore’s DBS has expanded business in Hong Kong over the past few years. According to the latest DBS earnings report, Hong Kong comprised 24% of DBS’ net profit from April to June.
Although protests in Hong Kong have not directly affected operations at DBS banks, Gupta admitted that consumer and business confidence could drop should political unrest and uncertainties continue./TISG