Singapore’s central bank has appointed five global asset management firms to oversee S$1.45 billion (HK$8.9 billion) in locally focused equity strategies as part of its ongoing effort to stimulate activity in its stock market amid growing competition with Hong Kong. The Monetary Authority of Singapore (MAS) announced the selection of Amundi, Franklin Templeton, HSBC Asset Management, M&G Investments, and Natixis Investment Managers on Tuesday. These appointments represent the third round of mandates granted under MAS’s Equity Market Development Programme.
The programme, which was launched in February 2025 with an initial fund of S$5 billion and subsequently increased to S$6.5 billion in February 2026, aims to encourage private sector investment alongside public funds. The initiative seeks to improve market liquidity and expand trading beyond Singapore’s largest blue-chip stocks. In addition to the manager appointments, MAS committed an additional S$20 million toward a grant aimed at supporting market-making for approximately 80 small- and mid-cap companies through the end of 2028.
Dong Qi Lim, CEO of HSBC Asset Management Singapore, expressed enthusiasm about the firm’s role in advancing Singapore’s equity market, highlighting plans to leverage their expertise to enhance capital attraction and broaden investor participation.
This strategic push by Singapore comes as it faces intensified rivalry with Hong Kong in attracting financial activity. The latest Global Financial Centres Index placed Hong Kong third globally and first in Asia, narrowly edging out Singapore, which placed fourth. Hong Kong leads in several financial categories including fintech and investment management, while Singapore retains a lead in professional services.
Singapore’s efforts appear to be yielding results, with local daily average securities turnover reaching S$81.8 billion over the year to June 2026, the highest in 18 years. However, Hong Kong maintains a substantial lead. In the first half of 2026, Hong Kong’s initial public offering (IPO) market raised HK$210 billion, ranking second globally behind the Nasdaq. Its daily cash market turnover averaged around HK$283 billion during the same period.
The competition also extends into wealth and asset management sectors. Earlier this year, Singapore introduced tax exemptions for selected profits derived from strong fund performance, aligning with Hong Kong’s tax cuts on carried interest paid to fund managers, a move intended to boost fund manager incentives.
In terms of industry size, Singapore’s assets under management reached S$6.7 trillion in 2025, reflecting a 10 percent year-on-year increase. Comparatively, Hong Kong’s asset and wealth management sector, which includes private banking, handled a record HK$42.2 trillion in 2025. Notably, Hong Kong surpassed Switzerland last year to become the world’s largest cross-border wealth management center, managing US$2.9 trillion in wealth.
The developments underscore the ongoing contest between these two leading Asian financial hubs as they seek to strengthen their positions in global finance and investment management.