Hong Kong holds a profoundly personal place in my heart. As I recently wrote my blog, “Best Countries to Incorporate a Company in 2025,” I couldn’t help reminiscing about its glorious past and feeling saddened by what it has become today.
From 2015 to 2020, Hong Kong was my frequent destination, primarily for business but also for leisure. It was the first location where I established an offshore company, one of my most profitable ventures ever. Ironically, it was this same venture that landed me in trouble for tax evasion (You can read all the gritty details in my book).
Hong Kong’s Golden Years
Previously unmatched as a global business hub, Hong Kong attracted investors worldwide due to its simplicity, transparency, and low-tax environment. Out of the 50+ countries I’ve visited, none matched Hong Kong’s energy, vibrancy, and intensity. Personal space might have been limited, but the city’s dynamic spirit was electrifying.
Hong Kong was the epicenter of Asian finance, entertainment, and a crucial aviation hub connecting numerous global destinations. I vividly remember taking late-night walks by the iconic Star Ferry pier, the skyline glittering across Victoria Harbour, and dreaming of one day owning an apartment in this magnetic city of lights and ambition.
Who could have imagined Hong Kong would lose its sparkle and global prominence? 😱🫢
The Turning Point: 2020
In June 2020, Beijing introduced the National Security Law, drastically reshaping Hong Kong’s political and economic landscape. The law significantly diminished Hong Kong’s autonomy, heightened political risks, reduced transparency, and tethered the city more closely to mainland China.
Interestingly, 2020 also marked a turning point in my personal life—two months prior, I received an investigation letter from the Dutch tax authorities. Like the National Security Law’s impact on Hong Kong, this event permanently altered my personal and professional trajectory.
Major Impacts on Investment & Business
Investor Confidence Collapse:
- The New York Times relocated a third of its staff from Hong Kong to Seoul in July 2020.
- The Motley Fool closed its Hong Kong operations entirely in October 2020.
- CK Hutchison Holdings, owned by billionaire Li Ka-shing, sold major port assets to a BlackRock-led consortium in 2025 due to geopolitical concerns.
Capital & Talent Exodus:
- Over 150,000 Hongkongers relocated to the UK since 2021, often accepting lower-paying roles.
- Prominent companies like Citigroup, Wells Fargo, L’Oreal, Moet Hennessy, VF Corporation, Sony, FedEx, and British American Tobacco shifted regional headquarters from Hong Kong to Singapore.
Reduced International Standing:
- Leading US law firms such as Milbank and Skadden shut their Hong Kong offices in 2024 due to reduced deal-making and geopolitical risks.
- Shipping firms relocated vessels and operations to Singapore and the Marshall Islands to mitigate geopolitical risks.
Economic Decline & Challenges
Real Estate:
- Housing prices plunged 25% from their peak in September 2021 and continued dropping through early 2025 by another 6-7% annually.
Retail Sector:
- Vacancy rates reached 11.7% in prime shopping districts by late 2024.
- Shopping malls became empty, burdened by high rents, labor shortages, and decreased foot traffic.
Wealth Exodus:
- Between 2019-2023, approximately 4,200 high-net-worth individuals left Hong Kong, ranking it fourth globally for millionaire departures.
- Bank of America projected capital flight could total nearly $76 billion by 2025.
Shifts in IPO and Crypto Landscape:
- Once a top-three global IPO hub, the Hong Kong Stock Exchange (HKEX) is now dominated by mainland Chinese listings, with Western firms pulling back.
- Hong Kong’s tightening crypto regulations have driven many digital asset firms to relocate to more welcoming markets like Singapore and the UAE.
Are There Still Opportunities in Hong Kong?
After enduring three of the darkest years of my life under investigation, I emerged stronger, more grounded, and ultimately more strategic. Likewise, I hold a cautious hope that Hong Kong may yet reinvent itself—not as the high-octane hub it once was, but as a quieter, more calculated wealth sanctuary.
❌ Do I still want to own an apartment in Hong Kong? No.
❌ Do I still see wealthy people within my circle flocking to Hong Kong? Not anymore.
✅ Do I still see opportunities? Yes, but they’ve evolved—narrower, less flashy, more discreet.
If you’re looking for resilience and stealth, Hong Kong still has cards to play:
1. Favorable Taxation
Corporate Tax Rate:
- 8.25% on the first HKD 2 million of assessable profits.
- 16.5% on assessable profits exceeding HKD 2 million.
- Territorial Tax System: Only Hong Kong-sourced income is taxable; foreign income is exempt.
2. Reduced Transparency
As part of China, Hong Kong has minimal automatic exchange of financial information, which may benefit those seeking greater discretion.
3. Accessible Banking & Private Wealth Services
With fewer billionaires crowding the space, it’s now easier to access elite banking services and enter private equity circles that were once out of reach.
4. Gateway to China
For those doing business with Mainland China, Hong Kong remains a strategic entry point. It offers easier company incorporation, banking, and cross-border payments without having to dive headfirst into China’s complex regulatory environment.
Would you still consider Hong Kong a strategic piece of your global investment portfolio? Or has its time passed for good? Drop your thoughts below—I’d love to hear from you.
Further Reading
If you’re considering opening an offshore company or protecting your wealth internationally, make sure you don’t repeat the mistakes I made. Here’s where to dive deeper:
- 📖 My Book – ‘Would I Come Out Alive?’ My raw, unfiltered journey through a 3-year tax investigation. Learn what I wish I had known before it all began. Read it here
- 📚 Blog Series – Ethical Tax Planning & Offshore Strategies Real-world insights and transparent methods to manage your taxes the right way. Explore the blog series
- 🌍 Best Countries to Incorporate in 2025 A detailed guide to tax-friendly jurisdictions, banking, and wealth protection.
