Coronavirus: Asia

Global banks up pressure on HK to ease curbs

HONG KONG • The finance industry is ratcheting up pressure on Hong Kong to ease its strict quarantine rules and abandon its zero-Covid-19 policy after a survey found almost half of major international banks and asset managers are contemplating moving staff or functions out of the city.

In a weekend letter to Financial Secretary Paul Chan, the Asia Securities Industry & Financial Markets Association (Asifma), the city's top lobby group for financial firms, said the hardline approach has put Hong Kong's status as a financial centre, its economic recovery and competitiveness at risk.

The lobbying body's growing alarm comes as other financial centres, including Singapore, London and New York, are starting to get back to normal, easing travel rules while seeking to co-exist with the coronavirus.

Hong Kong has some of the world's strictest anti-virus policies, placing incoming travellers in quarantine for as long as three weeks.

"The rest of the world is moving on, and Hong Kong isn't articulating a plan that gives individuals the certainty they need," said Asifma chief executive officer Mark Austen.

"Some firms are moving operations - it's not a huge amount right now. The longer this goes on, the more difficult it is for firms to keep those positions in Hong Kong."

In responses from 30 of its members, Asifma found 90 per cent saying that operating in Hong Kong has been "moderately" or "significantly" impacted. Almost three-quarters of the mostly international firms are experiencing difficulties in attracting and retaining talent, with a third dealing with "significant" challenges.

In the letter, Asifma lauded the city's success in suppressing the virus, but expressed concern over its long-term economic standing. The international financial services sector contributes about 21 per cent of the city's economic output, according to the group.

Hong Kong officials have said that their top priority is opening travel to the Chinese mainland.

Chief Executive Carrie Lam said this month that even a single death would be a "major concern" and that opening to broader China would also benefit businesses in the city since most are in Hong Kong to access the mainland.

BLOOMBERG

Join ST's Telegram channel and get the latest breaking news delivered to you.

A version of this article appeared in the print edition of The Straits Times on October 26, 2021, with the headline Global banks up pressure on HK to ease curbs. Subscribe