Hong Kong and Singapore Compete to Be China's Global Business Launchpad

Two Cities, Different Routes to Global Growth

About 80% of Chinese mainland enterprises choose Hong Kong as their base for international expansion, and around 60% of China's annual outward direct investment passes through the city, according to a Deloitte China report. Singapore is competing with that financial weight by making it easier for businesses to get established and prepare for their next market.

As of April 20, 2026, the contest turns on a practical question for Chinese entrepreneurs: which city can best turn an overseas ambition into a working business? Hong Kong offers access to mainland China, substantial fundraising capacity and connections to the Greater Bay Area. Singapore offers coordinated administrative support, a base for Southeast Asian expansion and a position that can appeal to international investors navigating tensions between China and the United States.

A technology founder from Shenzhen may ultimately want to sell in Jakarta, Dubai or London. Before entering those markets, the business needs somewhere to manage money, recruit staff, arrange legal support and coordinate operations. Hong Kong and Singapore both offer deep capital markets, common law legal systems and talent pools that speak Chinese.

A business launchpad is therefore much more than a registered address. It can be the place where a company establishes its regional headquarters, moves investment through offshore accounts, manages supply chains across borders and tests its business model before entering unfamiliar countries. The quality of those services can shape whether an international expansion succeeds or fails.

Hong Kong's strength lies in the financial and commercial connections it already commands. Singapore's challenge to that position rests partly on how smoothly it helps a newly arrived entrepreneur put the necessary pieces together.

Singapore Makes the Next Step Part of the First

Singapore's Economic Development Board, or EDB, sits at the centre of an approach described by business leaders as a no wrong door experience. The idea is simple: an entrepreneur should be able to enter the support system through one agency and receive help finding the others.

The typical founder's journey illustrates the promise. After arriving at Changi Airport and visiting the EDB, an entrepreneur can have an officer coordinating the relevant agency contacts within an hour. Instead of leaving the founder to work out which organisation handles each issue, the officer helps organise the next steps.

The EDB Professional Services Partner Guide extends that approach beyond establishing a business locally. It has two distinct sections, Developing in Singapore and Expanding into Southeast Asia. A founder can use it to find local tax advisers and identify firms able to support later moves into places such as Bangkok or Jakarta.

Singapore is therefore preparing for the entrepreneur's next destination while helping the business establish its first overseas base. For a company with several markets in mind, that coordination reduces the amount of administrative work its own team must organise.

Peter Chun, founder of the investment banking firm Silverbear Capital, which is based in Hong Kong, described Singapore's appeal to Chinese businesses seeking international money:

For companies wanting to raise capital from western markets, Singapore is much easier

Chun's assessment connects fundraising to geopolitics. Singapore's political neutrality can reassure investors and help Chinese companies navigate trade tensions between the United States and China. That advantage matters alongside the practical work of setting up accounts, finding advisers and building a regional operation.

The Pandemic Accelerated the Shift

Hong Kong and Singapore followed different reopening schedules during the COVID-19 pandemic. Hong Kong maintained strict zero COVID policies through much of 2022, while Singapore began gradually reopening in August 2021.

Singapore allowed fully vaccinated travellers to enter without testing before departure or quarantine by April 2022. The divergence in border policies accelerated a movement of talent, while more than 113,000 Hong Kong residents left the city between the middle of 2021 and the middle of 2022.

An American Chamber of Commerce survey captured the competitive pressure: 80% of respondents selected Singapore as Hong Kong's biggest competing destination. For businesses organising international teams, the ability to travel and bring employees into a city became part of the headquarters decision.

The sequence helps explain how Singapore's appeal developed:

• Since 2017, Singapore's single family office sector grew fivefold, reaching 400 offices by the end of 2020.
• In August 2021, Singapore began gradually reopening its borders.
• Between the middle of 2021 and the middle of 2022, more than 113,000 Hong Kong residents left the city.
• By April 2022, fully vaccinated travellers could enter Singapore without testing before departure or quarantine.
• Hong Kong retained strict zero COVID policies through much of 2022.

Singapore's reopening gave businesses a practical reason to reconsider where to place staff and regional functions. Its administrative support and appeal to international investors offered further reasons for companies to remain once operations were established.

Biotechnology and Private Wealth Bring Growth and Costs

Singapore has built a biotechnology ecosystem spanning discovery research through commercial manufacturing. That means companies can find support for both developing a treatment and producing it for sale, rather than locating each stage in a different place.

AstraZeneca is investing $1.5 billion in its first manufacturing facility for antibody drug conjugates in Tuas. These medicines combine an antibody with a drug, bringing different technical processes into one product. The investment adds manufacturing capacity to Singapore's research and commercial network.

Flagship Pioneering and other venture creation firms have also established regional hubs to pursue strategic partnerships across industry and academia. Venture creation involves helping build new businesses, while those partnerships connect commercial development with research institutions.

Singapore's private wealth business has expanded alongside these specialised industries. By the end of 2020, the city had 400 single family offices, a fivefold increase since 2017. A single family office manages the financial affairs of one wealthy family.

UBS, HSBC and Citi have increased their dedicated teams serving that wealth management ecosystem. Their expansion illustrates how an influx of wealthy clients can generate demand for banking, investment management and related professional services.

Singapore's attraction has also brought higher living costs. Rental prices in prime districts popular with expatriates rose 22.7% over 18 months. Certificate of Entitlement prices for vehicles reached record levels above S$114,000. The certificate is the entitlement required to own and use a vehicle in Singapore.

For companies choosing a headquarters, those costs sit alongside the benefits of convenient administration and access to specialist talent. A location that is easier to enter can still be expensive for the employees and founders who must live there.

Hong Kong Retains a Powerful Fundraising Advantage

Hong Kong's financial role remains substantial. The Deloitte China figures, about 80% of mainland enterprises choosing the city as their global launchpad and around 60% of annual outward direct investment passing through it, describe its importance as a base for investment and treasury operations. Treasury operations involve managing a company's cash, financing and payments.

Hong Kong Exchanges and Clearing data show that the city ranked first in Asia and second globally for fundraising last year. A total of 119 initial public offerings raised $37 billion. An initial public offering, or IPO, is the first sale of a company's shares to investors through a public stock market.

Bonnie Chan, chief executive of Hong Kong Exchanges and Clearing, said around 300 companies were in the listing pipeline. That pipeline represents businesses seeking to reach the market, while the 119 IPOs describe listings already completed last year.

Manycore Tech provides a recent example of Hong Kong's attraction for Chinese technology companies. The spatial intelligence business, the first of Hangzhou's celebrated six Little Dragons AI startups to go public, raised $130 million in Hong Kong. Its shares closed 144% above the offer price.

Manycore chose Hong Kong after previously planning a listing in the United States. Victor Huang, the company's chair, described the choice:

nowadays, the Hong Kong market is the best for a Chinese AI company

Chuangxin Industries Holdings, an aluminium smelter, illustrates demand beyond technology. It raised up to $707 million, with cornerstone investors including Glencore and Hillhouse Group committing $351 million. Cornerstone investors agree to buy shares as part of an offering, providing a substantial commitment before trading begins.

Singapore is also drawing interest from mainland businesses seeking to manage exposure to US trade tensions. At least five Chinese mainland companies are preparing to list on the Singapore Exchange within the next 12 to 18 months. Their individual listing dates have not been specified.

Advisers point to Singapore's conservative investor base and stringent listing standards as obstacles. Hong Kong's more liquid market offers an advantage: liquidity describes how readily investors can buy and sell shares, which helps make a market attractive to companies seeking capital.

Hong Kong Takes Its Pitch to Singapore

InvestHK has brought Hong Kong's case directly to its competitor. The agency concluded a business mission to Singapore from October 7 to 10, led by Wendy Chow, Head of Digital Technologies and Data Infrastructure.

The delegation included mainland unicorns FanRuan, eSignGlobal and Deepexi. A unicorn is a privately held startup valued at $1 billion or more. The mission sought to reinforce Hong Kong's position as a business hub while building partnerships in artificial intelligence, data management and automation.

Chow connected Hong Kong's international services with the opportunities available in the Greater Bay Area:

Hong Kong's strategic position as a global financial and innovation hub, combined with the immense opportunities within the Greater Bay Area, makes it the perfect springboard for Chinese Mainland businesses to expand overseas

Jin Hongzhou, chief executive of eSignGlobal, made a similar case for using Hong Kong as an international base, describing the city as:

the perfect gateway for global expansion

The mission served two purposes: promoting Hong Kong's services and seeking relationships in Singapore. Its focus on technology partnerships shows how competition for headquarters can coexist with efforts to connect businesses across both cities.

The Coordination Problem Behind the Competition

Hong Kong launched its GoGlobal Task Force last year, bringing together multiple government bureaus, public organisations and professional bodies. The structure is intended to coordinate support for companies expanding abroad.

Entrepreneurs arriving from Beijing or Shanghai can nevertheless encounter several agencies without a clear entry point. The challenge is organisational: Hong Kong has many of the required services, but founders may still have to work out how those services connect.

Singapore's EDB provides a central point that can guide an entrepreneur through agency interactions. Hong Kong's task force brings institutions together, yet the founder's experience can remain fragmented. The practical test is whether coordination within government produces a straightforward route for the business seeking help.

Chinese enterprises going global represent a defining economic story of this decade. Their choice of base affects access to investment, legal protections, employees and commercial partners. Administrative friction becomes consequential when it slows those decisions or adds work to an already complicated expansion.

Hong Kong offers immediate connections to Shenzhen's manufacturing capabilities and China's large consumer market through the Greater Bay Area. Singapore offers regulatory clarity and a neutral geopolitical position that Western investors can find reassuring. The cities are competing through different combinations of proximity, finance and execution.

Stablecoins Add a New Financial Tool

Hong Kong is also using digital finance infrastructure to strengthen its position. The Hong Kong Monetary Authority has approved stablecoin issuer licences for HSBC and a joint venture led by Standard Chartered.

A stablecoin is a digital token designed to maintain a steady value against a reference currency or asset. For businesses managing payments, the intended benefit is a digital means of transferring value with a more predictable price than a freely fluctuating cryptocurrency.

HSBC plans to integrate stablecoins into its PayMe app, which has 3.3 million users. The plan could bring the technology into everyday transactions rather than leaving it solely within specialist financial services.

Hong Kong's currency peg to the US dollar remains part of its appeal to international investors. The peg provides an exchange rate framework familiar to businesses holding or moving money internationally, while stablecoin licensing adds another element to the city's financial infrastructure.

A Business Can Use Both Gateways

Singapore Prime Minister Lawrence Wong and Hong Kong Chief Executive John Lee Ka-chiu met recently as diplomatic discussion shifted towards cooperation alongside rivalry. The two Asian Tigers share substantial commercial connections, even while competing to attract companies, people and capital.

Singaporean companies have established close to 600 offices in Hong Kong. Both cities serve as conduits for capital, giving businesses reasons to maintain relationships in each rather than making an exclusive choice.

Hong Kong's principal role is as an offshore gateway to mainland China. Singapore serves as a launchpad into ASEAN's nine other nations. A company can use those different strengths in sequence: begin in Hong Kong to access Greater Bay Area resources, then work with incubators based in Singapore, such as SGInnovate, to expand across Southeast Asia.

The proposed double gateway approach spreads the work of expansion across two bases. Hong Kong can support connections to mainland manufacturing, markets and finance, while Singapore can support regional partnerships and operations farther into Southeast Asia.

The Hong Kong Singapore FinTech Collaboration agreement and the ASEAN Hong Kong Free Trade Agreement already support trade and investment across borders. These arrangements give cooperation a practical foundation beyond diplomatic statements.

Hong Kong is developing its Northern Metropolis into an innovation corridor covering 30,000 hectares, while Singapore is expanding its biotechnology manufacturing capabilities. Those projects point to different areas of investment that businesses could use together.

The choice for a Chinese entrepreneur therefore depends on what the company needs first. Hong Kong brings fundraising depth and mainland connections. Singapore brings coordinated entry support and a regional expansion network. For some businesses, the most useful route may involve both cities.

Key Points

• About 80% of Chinese mainland enterprises choose Hong Kong as their global launchpad, and around 60% of China's annual outward direct investment passes through it, according to Deloitte China.
• Singapore's EDB coordinates agency support and provides a partner guide covering both local establishment and expansion into Southeast Asia.
• Different pandemic reopening schedules accelerated talent movement, with more than 113,000 Hong Kong residents leaving between the middle of 2021 and the middle of 2022.
• Hong Kong recorded 119 IPOs raising $37 billion last year, ranking first in Asia and second globally for fundraising.
• Singapore has attracted biotechnology investment and private wealth businesses, alongside rising housing and vehicle costs.
• Hong Kong's GoGlobal Task Force brings institutions together, but entrepreneurs can still face unclear entry points.
• Hong Kong approved stablecoin issuer licences for HSBC and a venture led by Standard Chartered; HSBC plans integration with PayMe's 3.3 million users.
• Nearly 600 Singaporean company offices in Hong Kong and existing cooperation agreements support a strategy using both cities for international expansion.