Saxo Bank A/S, a Denmark-based trading platform, is closing its office in Hong Kong. The company cited changes in the business environment as the reason.
In a statement released today (Monday), Saxo described the decision as “difficult but necessary.” It has confirmed that it has stopped accepting new clients and that its main focus is managing the “smooth offboarding process” for affected clients and partners.
Saxo Exits Amid Geopolitical Shifts
The decision to exit Hong Kong follows broader shifts in the city's geopolitical landscape. Beijing's increased control over the financial hub has impacted its business environment. Although Chinese stocks have recently rebounded due to a stimulus package, investor confidence remains divided over the sustainability of this recovery.
Saxo Bank also announced the closure of its Shanghai office. However, it emphasized that it will continue to operate in the Asia-Pacific region from its Singapore base. The company has been present in Hong Kong since 2011, offering multi-asset trading and investment services.
Meanwhile, Chase has closed seven local branches in the past week, resulting in customers needing to travel greater distances for essential services. Alongside Chase, Wells Fargo and Capitol have also closed branches. Furthermore, Fifth Third Bank, Bank First, and Citizens Bank have reported branch closures between September 8 and 14.
The Office of the Comptroller of the Currency has documented these closures, as it oversees branch activity and provides updates in a weekly bulletin.
Saxo Reports Hong Kong Loss
According to its 2023 annual report, Saxo Bank reported a loss of 29 million kroner ($4.3 million) from its Hong Kong operations last year. The office employed 18 full-time equivalent staff, in contrast to its 99 employees in Singapore.
In July, Saxo Bank hired Goldman Sachs Group Inc. as a financial adviser to explore strategic options. The company is owned by Zhejiang Geely Holding Group, which holds almost 50%, alongside founder Kim Fournais with 28% and Finnish firm Mandatum Oyj.
