Middle East conflict could divert new capital to Hong Kong: treasury chief

The conflict in the Middle East could divert new capital to Hong Kong due to the city’s stability and regulatory certainty, the treasury minister has said, while pledging to keep markets operating smoothly amid energy price shocks caused by the war in Iran.Secretary for Financial Services and the Treasury Christopher Hui Ching-yu said on Sunday the government would step up efforts to attract family offices and become a commodity trading hub as investors increasingly factored in political stability in their business decisions.“Some international funds originally destined for the Middle East market are now considering more diversified deployment in response to the geopolitical changes, and the conflicts have highlighted Hong Kong’s safety, stability and certainty compared with many markets in the Middle East,” he told a radio show.He added that since the outbreak of the US-Israel strikes against Iran in late February, the financial and legal sectors in Hong Kong had also received more inquiries from global investors about moving their wealth management businesses or family offices to the city.“This strongly signals that, amid geopolitical conflicts, Hong Kong remains the safest, most stable and ideal asset management platform and hub,” he said.Oil prices across the world have soared as the war, now in its third week, prompted Tehran to effectively close the Strait of Hormuz, the strategic waterway to the oil-rich Gulf.