The Hong Kong Monetary Authority (HKMA) has expressed concerns to HSBC about the bank’s choice to set up its new artificial intelligence hub in Singapore instead of Hong Kong. The central bank engaged with HSBC on this decision over the past few months, with two sources close to the matter confirming the exchange of views.
In July, HSBC revealed plans for a “global AI centre of excellence” in Singapore, which will hire more than 100 experts to assist its wealth management and payments divisions. This initiative supports broader restructuring under CEO Georges Elhedery, who has concentrated resources on key markets, including Hong Kong, while exiting other international operations.
Hong Kong’s financial regulators have shown particular sensitivity to the relocation. One source noted that the city is highly attentive to external resource shifts, especially when they appear to signal a departure. The HKMA’s concerns reflect a broader strategy to uphold Hong Kong’s position as a leading regional financial center. The decision to place the AI hub in Singapore comes after HSBC’s $14 billion acquisition of Hang Seng Bank in Hong Kong and its $2.1 billion sale of its Singapore insurance business to Allianz.
The bank framed the Singapore AI hub as a sign of its ongoing commitment to the city-state, though it already operates AI teams in both Hong Kong and the UK. Beyond the AI center, the HKMA has discussed with HSBC and Standard Chartered the need to station senior executives in Hong Kong, reinforcing regulatory priorities around local accountability.
HSBC did not address its discussions with the HKMA regarding the Singapore facility, instead emphasizing that it maintains senior leadership in both London and Hong Kong. Standard Chartered, which has moved executives from Singapore to Hong Kong, also chose not to comment on the matter.