As China tightens its tax rules, can Hong Kong remain a magnet for billionaires?

In FocusAs China tightens its tax rules, can Hong Kong remain a magnet for billionaires? For decades, Hong Kong has prospered by managing the wealth of Asia’s elite. Will that change as China introduces tougher offshore tax policies? For decades, Hong Kong has been a magnet for the rich. From wealthy Chinese setting up family trusts to millionaires migrating from across Southeast Asia, all of them have been sucked in by the city’s promise of free capital flows, a trustworthy legal system and extensive financial expertise. But some worry this model could now come under threat. Over the past few months, Beijing has launched a slew of measures to tighten controls over cross-border financial flows, seeking to prevent tax avoidance and capital flight. In Hong Kong, some fear the new rules could disrupt – or even divert – capital flows into the city’s vast wealth management industry. But analysts said the city could benefit over the long term.