Susquehanna Plans to Triple Hong Kong Office Space to Chase China's ETF Boom

A Bigger Footprint in Central

Susquehanna International Group, the Philadelphia-based trading and market-making firm, is looking to lease significantly more office space in Hong Kong, according to four sources cited by Reuters who spoke on condition of anonymity because the plans are confidential.

One option under consideration is three floors totaling more than 50,000 square feet in Cheung Kong Center II, a newly redeveloped tower in the city's Central business district. That would be roughly triple the firm's current space, which is under 20,000 square feet at AIA Central. Reuters reported the relocation has not been finalized. Susquehanna declined to comment.

Two of the sources told Reuters the added space is meant to support an aggressive hiring push. A fifth source said the firm is zeroing in on China's fast-growing ETF market and other asset classes to strengthen its global trading business. Shafaqna News carried the same Reuters reporting, adding no new detail beyond confirming the sourcing.

Why Hong Kong, Why Now

Susquehanna's move lands amid a broader push by global money into Chinese markets through Hong Kong's exchange. The South China Morning Post reported that foreign holdings of yuan-traded Chinese stocks have jumped by a third, with Qualified Foreign Institutional Investor data showing positions surging past $40 billion. China has also widened access to overseas stocks through new QDII quota allocations, and the country's pension fund has doubled its offshore investments to a new high, according to SCMP.

Chinese brokerages are moving the same direction from the other side. SCMP reported that Citic, CICC and Guotai Haitong are expanding cross-border deal-making and putting fresh capital into their international arms as Beijing pushes for stronger investment banks with global reach.

The IPO Market Is a Mixed Bag

Hong Kong's listing pipeline shows the city's appeal is real but the results are uneven. SCMP reported that Jollibee, the Philippine fast-food chain, chose Hong Kong over New York to list its international spin-off unit, part of what the paper calls the city's "IPO diversification drive." Indonesia's Akulaku has confidentially filed to list in Hong Kong, aiming to raise up to $500 million, according to The Standard.

But Shein's long-delayed Hong Kong debut this week landed with a thud. CNN reported the fast-fashion retailer's shares tumbled nearly 10% at the open Tuesday, September 1, after the company raised $1.7 billion in its IPO at a $26.5 billion valuation, down more than 70% from its 2022 peak of $98.2 billion. SCMP reported the shares partially recovered after the initial drop, with the company having sold 280 million shares at HK$48.56 each in what SCMP called Hong Kong's fourth-biggest IPO this year.

CNN reported Shein's net income fell 39% last year even as revenue grew, and that losses swelled to $99 million in the first quarter of this year. The retailer lost the tariff-free "de minimis" exemption on small parcels shipped to the United States, its second-largest market, and the European Union scrapped a similar exemption in July. Jin Lu of The Asia Group consultancy told CNN Shein "has absolutely missed the best timing for an IPO," while GlobalData's Louise Deglise-Favre said competition in fast fashion has only intensified.

The Case for Skepticism

A reasonable skeptic would point out that a booming ETF market and rising foreign stock holdings in Hong Kong don't necessarily mean China's underlying economy is healthy, and that Susquehanna's bet is on trading volume and access, not on China's growth story itself.

That skepticism has some backing. The Epoch Times reported that China's central government is projecting economic optimism even as "weakening investment, a prolonged property crisis, and job losses" fuel public pessimism, according to reporting by Michael Zhuang. The outlet also reported that cash-strapped local governments are stepping up tax collection and, in Guangzhou, running rental inspections that landlords fear could trigger demands for years of unpaid back taxes.

Those two realities aren't necessarily in conflict. A Wall Street trading firm can profit from volume and volatility in Chinese ETFs regardless of whether China's broader economy is expanding or contracting. Susquehanna makes money as a market maker on trades happening, not on the direction those trades take.

What's Unresolved

Susquehanna has not confirmed the Cheung Kong Center II lease, and Reuters' sources said the relocation plan remains unsettled. Whether the firm's hiring push and expanded footprint actually materialize, and on what timeline, is not yet public. Separately, whether Hong Kong's IPO pipeline of companies like Jollibee and Akulaku can outrun disappointments like Shein's debut will be the real test of the city's claim to be reclaiming its status as Asia's top listing venue.