Hong Kong may have lost after months of protest and unrest as much as $4bn in deposits to rival financial hub Singapore between June and August, Goldman Sachs estimates.
The investment bank estimated that there has been a maximum outflow of Hong Kong dollar deposits totaling $3bn to $4bn to Singapore, an alternative financial center for the region, as of August.
"We found modest net outflow from Hong Kong dollar deposits in Hong Kong and modest net inflow of FX deposits in Singapore," Goldman Sachs analysts Gurpreet Singh Sahi and Yingqiang Guo said in a research note.
The protests in Hong Kong have caused mass fluctuations in the market, with the Hong Kong Stock Exchange falling 17.9% since July.
Goldman Sachs also found that local currency deposits fell in August by 1.6%, which was the biggest drop of 2019, highlighting the effect of the protests on financial markets. Hong Kong's stockpile of deposits stood at HK$13.6 trillion ($1.73trn) in August, according to Refinitiv Datastream.
Hong Kong dollar deposits in the city dropped in August for the most in over a year while US dollar savings surged. Hong Kong Monetary Authority (HKMA) insists that the fluctuations are "normal".
Anti-government protests and political unrest in the Chinese city has escalated furter, culminating in the shooting of a protester Tuesday.
Goldman's report did not make any mention of the protests.