In the high-stakes world of asset management and fund structuring, few choices matter more than where to plant your regional flag. For global fund managers eyeing Asia’s growing wealth and investment opportunities, two cities consistently dominate the conversation: Singapore and Hong Kong.

Both financial centres remain formidable, and increasingly complementary, gateways to the region, yet each is adapting to global shifts with a distinct strategy.

Complementary rivalry

“I always take the view that one plus one is always larger than two,” says Han Ming Ho, partner at law firm Reed Smith. “But that doesn’t get readership clicks, doesn’t get eyeballs on such headlines.”

Ho, who is based in Singapore and closely tracks developments in both cities, leads the firm’s Asia-Pacific investment funds practice and has a bird’s-eye view of fund flows across the region and the regulatory, geopolitical and structural advantages that both hubs offer.

While some may be drawn to the drama of a rivalry, the reality is more collaborative and dynamic. Hong Kong and Singapore continue to play distinct but overlapping roles in Asia’s financial ecosystem.

Rather than competing in a zero-sum game, the two cities continually evolve sharpening their appeal and developing new capabilities in emerging industries and asset classes. Their ongoing reinvention also ensures they remain complementary pillars of the region’s financial architecture.

“Fund managers still default to these two cities,” Ho notes. “But strategy dictates the preference. If you're looking at North Asia, China, Korea and Japan, Hong Kong remains relevant. But if your mandate stretches into Asean [Association of Southeast Asian Nation], India and even Middle East capital flows, then Singapore may have the edge.”

It’s a truth that’s increasingly evident post-pandemic. As Hong Kong struggled with lockdowns and border restrictions, many firms temporarily shifted leadership and operations to Singapore.

“We saw CFOs and general partners relocating families – at least, provisionally,” Ho shares. “Now, while some have returned, others stayed. It forced a rethink, and Singapore gained mindshare in that period.”

Singapore’s neutral sweet spot

Singapore’s allure, according to Ho, lies in its perceived neutrality. “It’s small, nimble; but, more importantly, it’s seen as neutral,” he explains. “You can access China from here without being politically committed. And if your LPs [limited partners] are in the US, your place of operation sits well without questions raised either.”

The combination of strong rule of law, robust tax treaties ( particularly with India ), and a proactive regulator in the Monetary Authority of Singapore ( MAS ), is also crucial. “MAS wears many hats, central bank, regulator, promoter,” Ho points out. “And it wears them well.”

This neutrality is not just geographical, but reputational. “Singapore is increasingly the first stop for global investors entering Asean,” he adds. “They fly into Changi, proceed onto meetings in Vietnam, then maybe Jakarta, and fly out on return after spending a full day in Singapore. That hub status is not theoretical, it’s logistical.”

Hong Kong’s resilience: A giant not sleeping

Still, despite the rumours and conjecture, talk of Hong Kong’s decline are exaggerated. “There’s meaningful liquidity flowing into Hong Kong,” Ho points out. “Especially with China stabilizing and the capital IPO [initial public offering] markets showing signs of life again, we’re also seeing banks staffing up there.”

The investment banking strength in Hong Kong remains unmatched regionally, and when it comes to public markets, Hong Kong offers a depth and dynamism that Singapore doesn’t yet replicate.

New battlegrounds

Today, the tug of war between the hubs is no longer solely focused on areas like wealth management and investment banking. The contemporary emerging battlegrounds now include green finance, sustainability, crypto and fintech.

Singapore has emerged as a well-coordinated force in the sustainability space. Its Ecosperity Week, backed by wealth fund Temasek and held annually since 2019, has matured into Asia’s flagship platform for sustainability dialogue and innovation.

In parallel, the Singapore Fintech Festival celebrates its 10th anniversary this year, marking a decade of scale and influence that has made it arguably the most important fintech gathering globally.

“In green finance and fintech, Singapore is slightly ahead,” Ho says. “The MAS jumped on it early. The HKMA [Hong Kong Monetary Authority] has also caught on, but the MAS has really run with it.”

On digital assets, however, Hong Kong is pushing aggressively. “They’re ahead on digital currency, specifically stablecoins,” Ho notes. “Notwithstanding, given the short half-life of this asset class and with it the accelerating pace of change it presents, it’s still very early days in that space.”

As for sustainability, both cities are competing hard, Hong Kong with volume ( massive green bond issuances ) and Singapore with structure and innovation. “It’s another paradigm between them,” Ho adds. “And both have significant skin in the game now.”

What fund managers are thinking

Ultimately, for fund managers deciding between the two hubs, the calculus boils down to deal flow, talent access, investor comfort and regulatory support.

“There’s no binary choice,” Ho states. “Some managers start in Singapore, then open in Hong Kong. Others do the reverse. But what we are seeing is a shift, new managers are more likely to start in Singapore.”

That shift, he says, is driven less by ideology and more by clarity and capability. “Fundraising in Asia is strong. If you’re in infrastructure, data centres, renewables [and] logistics, there’s no shortage of LP interest. But how you structure, where you domicile, and what jurisdiction offers better exit pathways, that’s where both Singapore and Hong Kong come into play.”

Another notable addition to the Asian capital equation is the Middle East. “Dubai, Abu Dhabi and Saudi Arabia are becoming very relevant,” Ho shares. “Not just as capital providers, but also as centres of operation and learning. In some recent discussions, they’re saying: set up a presence here, and we’ll allocate.”

For fund managers in Asia, this creates a new dynamic wealth triangle among Singapore, Hong Kong and the Gulf Cooperation Coucil, each serving different needs in strategy, talent and capital access.

Singapore and Hong Kong may continue their quiet rivalry, but in today’s multi-polar, fast-evolving financial landscape, their combined and complementary strengths make Asia a far more compelling destination for capital than ever before.

The future is unlikely to provide a winner-takes-all scenario. As Ho puts it: “The sophisticated players aren’t choosing one over the other, they’re choosing both, strategically.”