Reuters: global firms consider moving treasury operations out of HK

Some global companies are considering shifting some of their treasury operations out of Hong Kong as the United States moves to end the city’s privileges, senior bankers said to Reuters. A handful of global firms are eyeing a move of some of their corporate treasury operations to countries like Singapore, Malaysia, Thailand, and Vietnam, four senior bankers with knowledge of the matter said.

“Some (multinational corporations) are considering shifting a part of their treasury operations (out of Hong Kong) to start with and then gradually scale it up,” one banker said. The bankers, who declined to be named due to the sensitivity of the matter, help companies set up the treasury centers and manage them. They are in talks with the companies about their likely relocation plans but said there was no strict timeline.

But the Hong Kong Monetary Authority (HKMA), the city’s de-facto central bank, told Reuters via e-mail that interests from corporates in setting up treasury operations in Hong Kong remained strong: “There is no noticeable sign of fund outflow from either the Hong Kong dollar or banking system,” it said.

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