Singapore and Hong Kong rivalry
Singapore vs HK: A high-flying rivalry
Hong Kong may still be the dominant regional banking centre but Singapore is an ever more favoured location. When Thomas McMahon and his Indian backers were deciding where to locate an Asian commodities exchange, they turned initially to Hong Kong – attracted by its proximity to China and the mainland’s booming, commodity-hungry economy.
Three years later, the exchange, a subsidiary of India’s Financial Technologies group is about to open – not in Hong Kong but nearly four hours flying time to the south in Singapore.
“we looked at Hong Kong with a view to being able to serve the China market, but we decided that we couldn’t run a viable independent commodities exchange from there – the business environment just wasn’t right,” said Mr. McMahon, a former director of Nymex Asia.
“Inversely, Singapore was very welcoming. The authorities were completely happy with the concept of an independent foreign-owned exchange competing with the existing exchange and the view seemed to be there should be a totally competitive environment, which is just what we wanted.”
The city state’s enthusiasm for what will be called the Singapore Mercantile Exchange, and its willingness to countenance potential collateral damage to the locally-listed incumbent, the Singapore
Exchange, nearly illustrates the business-friendly approach that is helping the island to emerge as a strong competitor to Hong Kong in the battle to be Asia’s 21st- century international business capital.
Others put it more graphically. “You walk into Changi Airport and they practically give you a hedge fund start-up kit.” Mr. James de Castro, one of the founders of Hong Kong- based Asia Alternative Asset
Management, told a recent conference on the island’s financial centre.
The prize is huge.
Rapid economic growth around Asia is creating all sorts of opportunities, dragging in large numbers of bankers, traders, lawyers and other professionals,. More big
Hong Kong may still be the dominant regional banking centre but Singapore is an ever more favoured location. When Thomas McMahon and his Indian backers were deciding where to locate an Asian commodities exchange, they turned initially to Hong Kong – attracted by its proximity to China and the mainland’s booming, commodity-hungry economy.
Three years later, the exchange, a subsidiary of India’s Financial Technologies group is about to open – not in Hong Kong but nearly four hours flying time to the south in Singapore.
“we looked at Hong Kong with a view to being able to serve the China market, but we decided that we couldn’t run a viable independent commodities exchange from there – the business environment just wasn’t right,” said Mr. McMahon, a former director of Nymex Asia.
“Inversely, Singapore was very welcoming. The authorities were completely happy with the concept of an independent foreign-owned exchange competing with the existing exchange and the view seemed to be there should be a totally competitive environment, which is just what we wanted.”
The city state’s enthusiasm for what will be called the Singapore Mercantile Exchange, and its willingness to countenance potential collateral damage to the locally-listed incumbent, the Singapore
Exchange, nearly illustrates the business-friendly approach that is helping the island to emerge as a strong competitor to Hong Kong in the battle to be Asia’s 21st- century international business capital.
Others put it more graphically. “You walk into Changi Airport and they practically give you a hedge fund start-up kit.” Mr. James de Castro, one of the founders of Hong Kong- based Asia Alternative Asset
Management, told a recent conference on the island’s financial centre.
The prize is huge.
Rapid economic growth around Asia is creating all sorts of opportunities, dragging in large numbers of bankers, traders, lawyers and other professionals,. More big