Hong Kong Lands Manulife: Corporate Hunt Pays Off as More Expected to Follow

Hong Kong’s Companies (Amendment) (No. 2) Ordinance 2025 which facilitates corporate re-domiciliation came into effect on May 23.  Secretary for Financial Services and the Treasury Hui Ching-yu, made a timely visit to the headquarters of two insurance companies, Manulife and Sun Life, in Toronto, Canada, and lobbied them to redomicile to Hong Kong where both companies have significant operations.

The New Rules of the Game

Just days later, Manulife announced on the 6^th of May that Manulife Life Insurance (International), upon approval from relevant regulatory authorities, will officially redomicile from Bermuda to Hong Kong starting in November this year under the Hong Kong government's newly introduced company re-domiciliation regime.

Manulife Life Insurance (International) will officially redomicile from Bermuda to Hong Kong starting in November.

The company stated that this decision reflects its firm confidence in Hong Kong's status as an international financial centre and demonstrates its commitment to providing better services to customers. All policyholders' policies and coverage will remain completely unchanged, with existing arrangements – including policy terms and conditions as well as contractual rights – remaining unaffected.

Mission Accomplished

Manulife indicated it will continue operating under the supervision of the Hong Kong Insurance Authority, maintaining high service standards. As the company strengthens its Hong Kong operations, customers can expect even higher-quality services and more innovative insurance solutions.

At the end of last month, Secretary for Financial Services and the Treasury Hui Ching-yu embarked on his visit to Canada. On May 25, while in Toronto, he visited two insurance companies headquartered in Canada with operations in Hong Kong, meeting with Manulife Financial's President and CEO Phil Witherington and Chief Financial Officer Colin Simpson, as well as Sun Life Financial's Vice President and Chief Financial Officer Tim Deacon and Vice President and Chief Strategy & Talent Officer Linda Dougherty.

Hui Ching-yu received a personal introduction from Manulife's President and CEO Phil Witherington (right) about promotional materials related to the company's Hong Kong operations over the years. (Government Information Services photo)

 The Canadian Charm Offensive

During these meetings, Secretary Hui introduced the newly effective company re-domiciliation ordinance and lobbied them to consider redomiciling their companies to Hong Kong to enjoy related legal and tax conveniences, while also reducing compliance costs that companies must bear to meet dual regulatory systems.

Hui particularly mentioned that on the first day the company re-domiciliation regime took effect, an international insurance group immediately announced plans to redomicile to Hong Kong, fully demonstrating the regime's strong appeal for enterprises to enhance operational efficiency. Under the new mechanism, non-Hong Kong incorporated companies that meet requirements regarding corporate background, integrity, protection of members and creditors, as well as its solvency, can apply to redomicile to Hong Kong while preserving their legal corporate identity to ensure business continuity. After re-domiciliation, if companies face taxation on comparable profits in Hong Kong, the government will provide unilateral tax credits to eliminate double taxation.

Secretary Hui also noted at the time that Hong Kong has a solid foundation in investment and trade, making it absolutely an ideal location for global enterprises seeking insurance, reinsurance and risk management services, as well as establishing captive insurance companies. For insurance companies, Hong Kong represents a market with tremendous development potential.

Hui Ching-yu attended a business luncheon for financial leaders in Toronto, delivering a speech titled "Hong Kong as a Stable Foundation Amid Global Changes."

Additionally, during his time in Canada, Hui Ching-yu met with local financial sector representatives, Securities and Exchange Commission officials, and chamber of commerce representatives. He also met with Canada's Deputy Minister of Finance and federal senators, mentioning that Fitch, S&P, and Moody's – all three rating agencies – recently unanimously gave Hong Kong a "stable" rating outlook, reflecting Hong Kong's resilience to move forward steadily amid increasing global economic and financial uncertainty. He emphasized Hong Kong's efficient policy mechanisms and robust financial markets as reliable partnership assets for Canada under the current uncertain global political and economic landscape.

Why This Matters

An expert commented that Manulife's decision to redomicile to Hong Kong demonstrates the success of senior SAR government officials visiting overseas to "tell Hong Kong's story well" and attract enterprises. Under the new mechanism, more companies headquartered overseas are expected to redomicile to Hong Kong, further consolidating Hong Kong's leading position as an international financial centre.

Ariel

** The blog article is the sole responsibility of the author and does not represent the position of our company. **

A recent Bloomberg interview has dropped some serious insights about a major shift in Asia's wealth landscape. While Chinese companies are flooding back to Hong Kong for IPOs this year, it's not just the capital markets that are heating up – the city's wealth management sector is absolutely crushing it, and mainland China's rich are taking notice of what might just be the ultimate financial comeback story.

The Great Wealth Migration

Arnaud Tellier, the big guy at BNP Paribas Wealth Management Asia-Pacific, just spilled the beans on something that would make Singapore's financial elite sweat a bit. During the pandemic, virtually every penny of offshore wealth from mainland China was rushing to Singapore like tourists to a duty-free shop. But by 2024, that whole dynamic flipped on its head.

Now we're seeing roughly 60% of mainland wealth heading to Hong Kong when it goes offshore, while Singapore's slice of the pie has shrunk to about 40%. That's not just a shift – that's a complete reversal of fortune that nobody saw coming during those lockdown days when Singapore seemed untouchable.

Arnaud Tellier, CEO of BNP Paribas Wealth Management Asia-Pacific, is from France.

This turnaround has been a goldmine for BNP Paribas. Their Asian wealth management assets have surged by 20% over the past year and a half, jumping from $80 billion to a hefty $105 billion. We're talking about $8 billion in net new money this year alone, which isn't too shabby compared to last year's $9 billion haul.

Tellier's team has been busy too – they've snapped up 20 new bankers this year, including poaching a six-person team from China Merchants Bank International. The recruitment drive continues, though he's keeping the exact numbers close to his chest.

Singapore's Self-Inflicted Wounds

Singapore didn't just lose this race; they practically handed Hong Kong the victory on a silver platter. Remember that absolutely massive money laundering scandal that rocked Singapore last year? We're talking about a jaw-dropping S$3 billion (equivalent to HK$18.4 billion) mess that had regulators going nuclear on nine financial institutions.

The Monetary Authority of Singapore didn't mess around, slapping fines totaling S$27.45 million (equivalent to HK$168 million) across the board – the second-highest penalty in their history. Big names like Credit Suisse (before UBS gobbled them up) and United Overseas Bank got hammered. When your reputation as a "safe wealth haven" takes that kind of hit, money has a way of finding somewhere else to park itself.

Policy Wars and Projections

Hong Kong's government hasn't been sitting around waiting for luck to strike. They've been rolling out tax incentives and talent schemes like they're going out of fashion, all aimed at rebuilding the city's status as Asia's private wealth playground.

The numbers being thrown around are pretty ambitious. Bloomberg Intelligence reckons Hong Kong's private wealth management assets could hit US$2.3 trillion by 2030 – potentially overtaking Switzerland to become the world's biggest cross-border wealth center. But here's where it gets interesting: Hong Kong's own Investment Promotion Agency is even more bullish, claiming they'll hit the top spot by 2027.

That's the kind of confidence you don't see every day, and frankly, given what we're witnessing with capital flows, it might not be as far-fetched as it sounds.

Why Neutrality Pays Off

For wealthy clients looking for stability and reliability without the political baggage, that neutrality factor is pure gold. While American and Chinese institutions are busy navigating geopolitical minefields, European players like BNP Paribas can focus on what they do best – managing money without the political theater.

Mainland capital is voting with its feet, and Hong Kong is winning that vote. Between Singapore's regulatory headaches, Hong Kong's policy push, and the simple geography of being right next door to the world's second-largest economy, this shift feels less like a temporary blip and more like a fundamental realignment of Asia's wealth management landscape.