Singapore beefs up rivalry with Hong Kong by picking 5 firms to boost equity market

Singapore's central bank has chosen five global asset managers to manage S$1.45 billion (US$1.3 billion) in locally focused equity strategies, in a move aimed at reviving the city state's stock market amid intensifying competition with Hong Kong. The five firms selected are Amundi, Franklin Templeton, HSBC Asset Management, M&G Investments, and Natixis Investment Managers.

This is part of the Monetary Authority of Singapore's (MAS) Equity Market Development Programme, which was launched with S$5 billion in February 2025 and expanded to S$6.5 billion this February. The program aims to attract private capital alongside public funds to increase liquidity and trading activity beyond Singapore's largest blue-chip stocks.

Alongside the manager appointments, MAS also committed an extra S$20 million to a grant scheme designed to support market-making activities for around 80 small and mid-cap companies through the end of 2028. HSBC Asset Management Singapore CEO Pang Qi Lim expressed excitement about contributing to the development and internationalization of Singapore's equity market.

The central bank's initiative comes as Singapore grapples with growing competition from Hong Kong. Hong Kong recently ranked third globally and first in Asia in the Global Financial Centres Index, just one point ahead of Singapore. Hong Kong also excels in the index's fintech, investment management, insurance, and finance sector rankings.

Nonetheless, Singapore's local trading activity is showing signs of improvement, with daily average securities turnover on the local exchange reaching S$1.8 billion in the year to June, the highest level in 18 years. However, Hong Kong maintains a significant lead. In the first half of 2026, Hong Kong's initial public offering market raised HK$210 billion (US$26.77 billion), ranking second globally behind Nasdaq.

Its cash market's daily turnover averaged a record HK$283 billion during that period. The rivalry between the two Asian financial powerhouses has expanded into wealth and asset management as well. In August, Singapore announced tax exemptions on certain profits from strong fund performance, following Hong Kong's move to lower taxes on carried interest.

Singapore's assets under management grew 10 percent year-on-year to S$6.7 trillion in 2025, according to an annual survey. In contrast, Hong Kong's total asset and wealth management industry managed a record HK$42.2 trillion in 2025. Hong Kong also recently overtook Switzerland to become the world's largest cross-border wealth center, managing US$2.9 trillion in cross-border wealth.