Singapore-based hedge fund Modular Asset Management, a spinoff of Millennium Management, is set to establish a presence in Hong Kong, reflecting the city’s ongoing efforts to solidify its status as a global financial hub, according to a report by Bloomberg.
The firm, which manages $1.5bn and specialises in macroeconomic strategies, has recruited former Barclays trader Alex Hu Xiuyi as a portfolio manager. Hu marks Modular’s first hire for its planned Hong Kong office, slated to open in the second quarter, according to a source familiar with the matter.
The new office aims to strengthen Modular’s proximity to the Chinese market and attract finance professionals who prefer to remain in Hong Kong, the source said, requesting anonymity.
This expansion takes place against the backdrop of escalating geopolitical tensions and China’s slowing economy, factors that are reshaping the landscape for global markets. Macro hedge funds, which invest across equities, fixed income, currencies, and commodities, are navigating increased polarisation in the global economy driven by the US-China rivalry.
Earlier this year, the outgoing Biden administration added tech giant Tencent Holdings and Tesla battery supplier Contemporary Amperex Technology to a list of companies accused of ties to China’s military.
Concurrently, China’s central bank intensified bill auctions in Hong Kong to record levels in a bid to stabilise the yuan, as speculation over Donald Trump’s potential second presidential term heightened uncertainties.
On the campaign trail, Trump had frequently championed tariffs, threatening import duties of up to 60% on Chinese goods.
Hong Kong faces mounting competition from Singapore, Tokyo, and emerging financial hubs in the Middle East. The city is working to rebuild its appeal after enduring a talent exodus during Covid, China’s regulatory crackdowns, and ongoing geopolitical challenges.
Between July and October, Hong Kong’s securities regulator registered a net increase of approximately 830 newly licensed financial professionals, pushing the total to a record 42,000.
