The aging Regal Oriental Hotel is hardly a Hong Kong hotspot, yet in recent weeks it’s become a popular destination for bankers from some of the city’s top lenders, some of whom made repeat visits.

Hong Kong’s move to cut taxes for hedge funds has set off a frenzied wave of maneuvering across the city’s financial sector, with investment banks fearing an exodus of prop traders and one fund even considering rebranding a receptionist as an investor relations official to make the most of the potential windfall.