Billionaire-Backed Saxo Bank Reveals Hong Kong Expansion Plans
Billionaire-Backed Saxo Bank Reveals Hong Kong Expansion Plans
(Bloomberg) -- Online trading platform Saxo Bank A/S, which is part owned by Chinese billionaire Li Shu Fu, plans to do a lot more business in Hong Kong despite the increasingly tense political climate there.
“We are trying to further build our presence in Hong Kong as we speak,” Kim Fournais, chief executive officer of the Danish firm, said in a phone interview.
“We do much, much more business in Singapore than in Hong Kong, and there’s no reason we shouldn’t do as much in Hong Kong,” Fournais said. “A year ago, everyone liked Hong Kong as a place to do business. Now, it’s different. But I still think Hong Kong is a highly relevant place in the world and will continue to be so.”
China’s clampdown on Hong Kong has left western banks there walking a tightrope after the U.S. imposed sanctions it says are designed to protect freedom of speech. But China has also signaled it wants Hong Kong to remain a financial hub. For now, there are signs that high-net-worth investors are mostly staying put, as they try to assess how far the mainland will go to enforce its stricter regime.
Fournais said Hong Kong is a “gateway to China” and “of course when it gets a little shaky, some people pull up their roots and leave. That’s normally not what we do.”
Saxo, which is developing and rolling out products specifically for the Hong Kong market, had more than $60 billion in client assets at the end of June, marking a record for the firm. It had its biggest first-half net profit in at least five years, thanks to the spike in market volatility.
The online broker is 51% owned by Zhejiang Geely Holding Group Co., of which Li Shu Fu is chairman. Fournais, a co-founder, holds about 27.5%.
Saxo is structuring its Chinese and global activities so there’s a “very, very sharp separation between them with respect to sharing data,” Fournais said. Having a majority Chinese shareholder doesn’t compromise the company, he said.
“That’s not how this company is being run,” Fournais said. “Geely has never, ever tried to put any pressure on us. Myself and the team and the board, where our owners are very important, are fully aligned on our strategy.”
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