Online trading platform Saxo Bank announced the closure of its Hong Kong office on Monday, citing a “rapidly changing business landscape” in the region.
Saxo Shuts Hong Kong Office Amid Shifting Business Landscape
The decision comes amidst ongoing geopolitical tensions and a broader economic slowdown.
This was a “necessary decision,” Saxo Bank stated in a press release. The firm said it will prioritise a “smooth offboarding process” for its affected clients, with new account openings ceasing immediately and restrictions placed on existing accounts starting November 1st.
The closure, according to a Bloomberg report, reflects the evolving landscape of Hong Kong’s financial sector and Beijing’s increased control over the city.
Despite recent stock market rebounds in China fuelled by stimulus packages, investor confidence remains divided.
Saxo Bank emphasised its continued commitment to the Asia-Pacific region, with its Singapore hub serving as the base for future operations.
The company established its Hong Kong presence in 2011, specialising in multi-asset trading and investment services. However, Bloomberg noted that according to its 2023 annual report, the Hong Kong branch experienced financial difficulties, incurring a loss of $4.3 million.
The smaller Hong Kong team of 18 employees stood in stark contrast to the larger Singapore office with nearly 100 staff.
This decision follows Saxo Bank’s appointment of Goldman Sachs as a financial advisor in July to explore strategic opportunities. The company is partially owned by Chinese conglomerate Zhejiang Geely Holding Group.
While Saxo Bank reported a positive first half of 2024 with a 35% rise in adjusted net profit, the closure of its Hong Kong office signals a shift in its regional strategy.
The company’s future in the Asia-Pacific market will likely focus on its established Singapore hub.
