The continuing Hong Kong unrest is pushing capital towards rival financial centre Singapore, with at least $4bn transferred.
While the estimated $4bn that moved over to Singapore from April to August is "very miniscule" compared with Hong Kong's $1.7trn in total deposits, the "trend will likely continue as the situation worsens in Hong Kong," Ju Ye Lee, a Singapore-based economist with Maybank Kim Eng Securities, told Bloomberg.
Earlier this week, the chief of Singapore's central bank had played down the inflow of capital into the city state owing to the political protests in Hong Kong. There are some signs of the capital inflow happening but "we don;t think its significant or substantial," Ravi Menon, Managing Director of the Monetary Authority of Singapore (MAS), said.
Singapore has seen demand for gold storage rise in recent months, according to J. Rotbart & Co, which helps customers buy, store and transport precious metals. The bullion house, which services high net-worth individuals from Hong Kong, saw requests skew to around 75% for Singapore and 10 per cent for Hong Kong, compared with a split of about 50-35 previously.
"And if one place stands to benefit from Hong Kong's troubles, it is that other self-governing, Chinese-majority, financial, commercial and shipping hub in East Asia: Singapore," The Economist wrote.