Beijing’s recent regulatory measures targeting cross-border investment and offshore insurance gains are expected to cause some short-term uncertainty but will not diminish Hong Kong’s position as a key wealth management center, according to Kwang Kam-shing, Hong Kong CEO and chairwoman for North Asia at JPMorgan Chase.
In an exclusive interview, Kwang acknowledged that the full impact of Beijing’s policy changes, introduced in late May, remains unclear. The new rules require Hong Kong financial firms to verify whether their mainland clients’ funds originate offshore. Additionally, several major mainland cities, including Shanghai, have begun imposing a 20 percent tax on profits from offshore insurance policies.
Despite these developments, Kwang emphasized that demand among wealthy individuals in mainland China and the broader region for services such as investment diversification, succession planning, and philanthropic estate management remains robust. These requirements align well with Hong Kong’s established financial infrastructure and vibrant capital markets, she said.
However, Hong Kong faces increasing competition from Singapore, which recently unveiled a series of incentives designed to attract investment professionals. Measures announced by the Monetary Authority of Singapore and the Ministry of Finance on August 19 include tax exemptions on investment profits for managers of single-family offices and other qualifying funds. Meanwhile, Hong Kong has proposed a tax break on carried interest — performance fees earned by hedge fund and private equity managers — with a legislative vote expected later this year.
Kwang described the rivalry between Hong Kong and Singapore as a constructive dynamic rather than a zero-sum contest. “It is actually very healthy and lucky for talent to have options,” she said. “If they want to stay in Asia, they have Singapore and Hong Kong to choose from. I think it will be a win-win situation.”
She also highlighted JPMorgan’s commitment to maintaining and expanding its workforce in both cities, while leveraging artificial intelligence to enhance operational efficiency. Kwang pointed to her own career—spanning over three decades across both cities—as a reflection of the opportunities present in each financial center. Born and raised in Hong Kong, she earned an accounting degree in Singapore during the 1980s and worked at Arthur Andersen and several banks before joining JPMorgan in 1998.
Kwang noted that Hong Kong’s strengths lie in its role as a gateway to mainland China, its status as the largest offshore yuan center, and its active equity markets. Singapore, by contrast, excels in foreign exchange and commodities trading. She expressed confidence that ongoing competition would drive improvements and that attracting and retaining talent remains critical to growth.
“Our ability to grow depends on our ability to attract and retain talent. So we welcome any policies that will help attract talent to the cities,” Kwang said, underscoring a positive outlook for Asia’s financial sector amid shifting regulatory landscapes.