Middle East conflict could divert new capital to Hong Kong: treasury chief

Capital Diversion to Hong Kong Amid Middle East Conflict

Amid the ongoing conflict in the Middle East, Hong Kong is emerging as a preferred destination for capital diversification. Treasury Secretary Christopher Hui has emphasized the city’s stability and regulatory certainty, making it an attractive hub for wealth management and commodity trading.

‘Some international funds originally destined for the Middle East market are now considering more diversified deployment in response to geopolitical changes,’ said Hui, highlighting Hong Kong’s safety and stability compared to many markets in the Middle East.

Since the US-Israel strikes against Iran, the financial and legal sectors in Hong Kong have received more inquiries from global investors about moving their wealth management businesses or family offices to the city. Oil prices have surged due to the conflict, further prompting global investors to consider re-routing their investments to Hong Kong.

The government is actively encouraging family offices and commodity trading activities, signaling Hong Kong’s commitment to maintaining market stability.