Last week, we reported that Saxo Bank closed its office in Hong Kong, but were unable to obtain a statement. Yesterday, Saxo Bank A/S, the Denmark-based trading platform, officially announced the closure, citing changes in the business environment.
Saxo described the decision as “difficult but necessary” and confirmed it has stopped accepting new clients in Hong Kong. The company’s main focus now is ensuring a smooth transition for affected clients and partners.
Adapting to Geopolitical Shifts
Saxo’s decision to exit Hong Kong aligns with broader shifts in the city’s geopolitical landscape, notably increased control by Beijing. While Chinese stocks have recently rebounded due to a stimulus package, investor confidence remains uncertain.
In addition to closing its Hong Kong office, Saxo will cease operations in Shanghai, while continuing its Asia-Pacific presence from Singapore. Saxo established itself in Hong Kong in 2011, specializing in multi-asset trading and investment, but reported a loss of 29 million kroner ($4.3 million) in 2023.
Strategic Moves and Future Outlook
In July, Saxo engaged Goldman Sachs Group Inc. to explore strategic options. Ownership of Saxo includes a nearly 50% stake by China’s Zhejiang Geely Holding Group, with founder Kim Fournais holding 28% and Finnish firm Mandatum Oyj also invested.
Saxo reported a 35% rise in net profit for the first half of the year, totaling $76 million, with client assets reaching $122 billion. Despite closing its Hong Kong office, Saxo remains focused on strategic growth in the Asia-Pacific region, anchored by its operations in Singapore.
Saxo Bank Hong Kong closure. Saxo Bank Hong Kong closure
