The city's independent judiciary and long-established respect for the rule of law make it a strong candidate. However, its proximity to China is both a help and a hindrance.
Product governance rules under Mifid II are likely to affect the operations of Asian product producers, but most firms remain unprepared for the changes to come, say experts.
Bingham McCutchen expands its investment management group to Hong Kong, while Simmons & Simmons will set up in Beijing and has hired a funds specialist there.