Amid battle for AI edge, Hong Kong presses HSBC over Singapore hub decision: sources
As Hong Kong and Singapore compete for leadership in businesses ranging from foreign exchange trading to wealth management, the battleground has extended to artificial intelligence, with both cities vying to attract investment from HSBC Holdings and other major corporations, according to industry players. The issue came into focus after the Hong Kong Monetary Authority (HKMA) questioned HSBC…
In the fierce race for AI supremacy, Hong Kong and Singapore are both striving to lure major corporations such as HSBC Holdings, according to industry insiders. Following the Hong Kong Monetary Authority (HKMA) questioning HSBC about its decision to establish an AI center in Singapore, despite Hong Kong being its largest market, sources disclosed to the South China Morning Post.
HSBC has announced plans to establish an AI center in Singapore by year-end and hire 100 AI specialists there, following a recent sale of its Singapore life and health insurance business to Allianz for $2.1 billion. The HKMA has been in talks with HSBC since the announcement. An HSBC spokesperson declined to comment. This issue gained more significance after Hong Kong released its five-year development plan, which prioritizes AI investment and development.
Tom Chan, honorary president of the Institute of Securities Dealers, suggested that this move signaled to large banks and corporations that Hong Kong should be prioritized in AI investment decisions. Kenny Ng, a strategist at Everbright Securities International, emphasized that Hong Kong cannot solely depend on government initiatives to become an AI hub; instead, it requires significant investment from large corporations.
Stephen Law, president of the Hong Kong Institute of Certified Public Accountants, stressed the need for Hong Kong to make it commercially attractive for banks to develop and deploy AI by creating a robust ecosystem. HSBC's CEO, Georges Elhedery, clarified that the bank still considers Hong Kong an important center for its AI investment, boasting a strong team of 150 AI specialists and plans to build an AI research institute in the city.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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