Hong Kong's rich brace for ‘worst-case scenario'

The wealthy are opening offshore bank accounts and eyeing overseas property.

Whilst it doesn't add up to an exodus just yet, Hong Kong's rich are increasingly hedging their bets as the financial hub suffers its worst economic and political crises since at least 1997, reports Bloomberg.

An unnamed Hong Kong businessman has moved U$10m to Singapore and plans to transfer more, reports Bloomberg. Another is eyeing London property, worried that prices in Hong Kong are too high; whilst other well-to-do families across the city are opening offshore bank accounts and applying for alternative passports.

Many high net worth investors are either reducing their Hong Kong exposure or taking steps to ensure they can withdraw assets at a moment's notice. Private bankers say their clients accelerated contingency planning efforts after China announced last month it would impose controversial national security laws on Hong Kong.

Currently, there is little evidence so far of widespread capital flight. Hong Kong bank deposits increased to a record in April, and the city's currency has continued to trade at the strong end of its permitted band against the dollar.

In private, however, many Hong Kong entrepreneurs and high-earning professionals are sounding a more pessimistic note.

Here’s more from Bloomberg.