Hong Kong Exodus Could Spur $36 Billion in Outflows: BofA
- Bank of America expects outflows as people leave for U.K.
- Flows considerable enough to subdue Hong Kong dollar strength
Part of the impact will be offset by large inflows driven by Chinese companies listing in Hong Kong, which helped boost the currency in 2020.
Photographer: Lam Yik/BloombergHong Kong could see capital outflows of as much as $36 billion this year as residents leave the city for the U.K. in response to China’s sweeping security law, keeping the local dollar off the strong end of its trading band with the greenback.
That’s according to a study by Bank of America Corp. More than two-thirds of the city’s population would be eligible for a path to British citizenship, according to the U.K government, which has offered the immigration route in its response to the law that was rapidly enacted in the former British colony last summer. The route is due to officially open at the end of this month. This year 153,300 people could relocate to Britain, strategist Chun Him Cheung wrote in the note this week, with the estimate based on U.K. government data.