Saxo Bank A/S, a trading platform, is closing its office in Hong Kong, citing a changed business landscape in the embattled financial hub.

The decision was “difficult but necessary”, the Hellerup, Denmark-based firm said in a statement on Monday. The company has ceased taking on clients, and the main priority will now be to ensure a “smooth offboarding process” for all impacted clients and partners. 

The move comes as the Asian financial hub grapples with a changing geopolitical environment after Beijing tightening its grip on the city. While Chinese stocks have staged a turnaround in recent days thanks to a sweeping stimulus package, there are divisions among investors on how long the rebound will last. 

Saxo, which also has announced the close of its Shanghai office, will remain present and continue operations in the Asia-Pacific region, based in Singapore.  

Saxo established itself in Hong Kong in 2011, working in multi-asset trading and investment. According to its 2023 annual report, the firm lost 29 million kroner (US$4.30 million or RM17.95 million) in Hong Kong in 2023. It had 18 full-time equivalent staff in the Chinese territory, compared with 99 in Singapore.  

In July, it hired Goldman Sachs Group Inc as the financial adviser for a review of strategic opportunities. 

Saxo is owned by China’s Zhejiang Geely Holding Group, which holds almost 50% of the company, along with founder Kim Fournais, who holds 28%, and Finnish Mandatum Oyj.

Saxo reported an adjusted net profit of US$76 million for the first half, a 35% rise from the same period a year earlier, with total client assets of US$122 billion. 

  - Bloomberg