Saxo Bank Shuts Hong Kong Office

Saxo Bank has officially announced the closure of its Hong Kong office, citing significant shifts in the business environment as a primary factor.

In a statement released earlier this week, the Danish trading platform characterized the decision as "difficult but necessary."

The bank has ceased accepting new clients and is currently focused on managing a smooth offboarding process for existing clients and partners.

Saxo Bank's exit from Hong Kong follows a broader trend of companies reassessing their operations in response to geopolitical shifts. Although recent stimulus measures have led to a rebound in Chinese stocks, investor confidence remains tepid regarding the sustainability of this recovery.

The closure of the Hong Kong office also aligns with the bank's decision to close its Shanghai office, although Saxo will continue its operations in the Asia-Pacific region from its Singapore base.

In its 2023 annual report, Saxo Bank disclosed a loss of 29 million kroner (approximately $4.3 million) attributed to its Hong Kong operations last year, where it employed 18 full-time staff compared to 99 in Singapore.

Earlier this year, the bank had hired Goldman Sachs Group Inc. as a financial adviser to explore strategic options, signaling potential adjustments in its business strategy.