Hong Kong needs to allow free travel to retain financial hub status, report says

Hong Kong needs to allow financial sector workers to travel freely in order to maintain its global investment and banking hub status, an industry report has said, as the city is one of the world’s largest investment and banking hubs. continues to maintain some of the strictest coronavirus rules.

Hong Kong remains a key regional market, but faces “some of the biggest challenges it has ever faced”, the Alternative Investment Management Association (AIMA) and PwC’s report released on Tuesday said.

The report said the Chinese Special Administrative Region is the largest hedge fund centre in Asia, with more than half of the major funds that have at least $1 billion in management in the region based in Hong Kong.

But as travel restrictions and border closures have driven residents out of the city over the past two years, the financial services sector is facing a ‘brain drain’ of talent.

“Against increasing competition and global challenges, including the pandemic, more must be done to maintain the city’s competitive advantages and create a bright and resilient future,” the report said.

“It is important that a delicate balance is struck in giving due recognition to Hong Kong’s stature as an international financial centre and broader local public health considerations.”

Hong Kong has had more than 1.2 million coronavirus infections and nearly 9,400 deaths, according to government figures.

While the city has escaped the death of other major centres, Hong Kong is one of only a handful of cities still enforcing a quarantine with inbound travellers required to spend seven days in a designated hotel at their own cost.

A rule banning personal flights to bring passengers infected with the COVID-19 virus was eased last week after the city government said the restrictions were causing “unnecessary hassle” and inconvenience to residents. made.

Quarantine rules and flight restrictions have meant business travel to Hong Kong has fallen flat and global bank chiefs have avoided travelling to the city since 2020, even while visiting rival regional financial hub Singapore in recent months.

According to official figures, Hong Kong has recorded a net outflow of more than 140,000 people since the beginning of the year. It is not clear how many are temporarily or permanently gone.