The territory has seen security crackdowns and severe COVID restrictions, and many residents have left in recent years.. Hong Kong's Reopening Brings Scant Gains for Financial Hub Trying to find talent to replace those who leave is proving hard. [1/5]A visitor looks at screens showing advertisements of NFTs and virtual lands, at Hong Kong Web3 Festival, in Hong Kong, China April 13, 2023. Led by former policeman . Some are scared while others just want an opportunity for a new life. The 53-year-old businessman from Hong Kong was stopped and searched by the Chinese authorities when he flew into Shanghai on a work trip in late 2019. Hong Kong's resilience is legendary. On the equities side, we launched the Hong Kong-Mainland Exchange Traded Funds (ETF) Cross-Listing Scheme in May 2022. Border closures threaten Hong Kong's financial hub status 3 November 2021 Getty Images Rival financial hub Singapore has opened quarantine-free travel to 11 countries while Hong. The news has led to dismay among the city's vibrant business community, with some questioning if this threatens its status as Asia's financial hub. John Lee Photographer: Paul Yeung/Bloomberg But there's no denying that it has lost ground, in particular to Singapore where money and talent is pouring in. Longer term, there could also be issues with ethical investment. Hong Kong to Reopen Downtown Airport Check-In Service July 5 The city's access to mainland China and proximity to other countries in the region has also worked in its favor. 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Wong says he had been thinking about moving since the protests started in June 2019 as he realised Hong Kong was changing dramatically under Chinese rule but had been reluctant to leave his elderly parents. I go to protests here in Leicester Square. Its benchmark index, the Hang Seng, has been wallowing for two years, slumping from more than 32,000 points in February 2018 to around 26,000 this week. Hong Kong's M+ museum in the West Kowloon Cultural District art hub will offer a 25 per cent discount on its general admission tickets for two months to attract more visitors over the summer . It has happened in the past. 4 min read By Selena Li, Kane Wu and Xie Yu HONG KONG (Reuters) - Hong Kong and Chinese officials on Wednesday touted the city's connection to the world's. Hong Kong woos mainland China crypto firms in push to bolster finance Per maggiori informazioni sulle modalit di utilizzo dei dati sensibili, consulta la nostra Informativa sulla privacy e la nostra Informativa sui cookie. International Financial Centre. Riot police after the passing of the national security law in Hong Kong. He says fintech and other virtual tech application such as NFT and cryptocurrencies . Hong Kong's reopening brings scant gains after pandemic and crackdown HONG KONG -- "All of Asia's key markets less than four hours away." "Half of the world's population can be reached within five hours . Hong Kong's financial center status could see a 'gradual erosion - CNBC However, the majority of the population are happy to keep borders closed for now. . The rate of growth has been slowing for a decade, falling from rates of close to 3% in the late 1990s, shortly after the UK handed the territory back to China in 1997, to less than 1% in more recent years. Now, investors are also worried about the reaction of the increasingly belligerent Trump regime in the United States, which could put tariffs on Hong Kong or sanction its rulers. While scandals and high-profile bankruptcies have prompted some governments to distance themselves from the cryptocurrency industry, Hong Kong is pulling out all the stops to court mainland China crypto companies to rebase in the city. HK's role as major global financial hub is on firmer footing, 25 years Money has been quietly leaving Hong Kong since late last year although the territorys monetary authority disputes this. 2023 BBC. The group said a survey of members, including some of the world's largest banks and asset managers, showed 48% were contemplating moving staff or functions away fromHongKongdue to operational challenges. They do want to have a international capital market on Chinese soil in Hong Kong because of course the mainland capital markets are behind a wall of capital controls, that you cant freely move money in and out of the mainland, he said. China's rubber-stamp legislature on Thursday approved a resolution imposing a new national security law on Hong Kong. Just a few short years ago, to disembark from the Beijing flight at Hong Kong International Airport was to take a step into a freer environment. Chan Long Hei | SOPA Images | LightRocket | Getty Images, Talent loss in Hong Kong may not have impact on occupancy rates: Sunlight REIT, Medicare will allow pharmaceutical companies to publicly discuss drug price negotiations, Hepatitis C cure isn't reaching patients due to financial barriers, CDC recommends RSV vaccines from Pfizer, GSK for adults 60 and older. SHARE. "It has a big impact in a wide variety of directions," president of the American Chamber of Commerce in Hong Kong, Tara Joseph, tells the BBC. Competitive International Financial Platform With its strengths in banking, capital market and asset management, Hong Kong provides an all-encompassing and high-quality financial platform for investors, financiers, asset managers, funds and financial institutions alike from all over the world. Hong Kong police issue arrest warrants for eight overseas activists Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. Quando utilizzi i nostri siti e le nostre app, noi utilizziamo i. autenticare gli utenti, applicare misure di sicurezza e prevenire spam e abusi; misurare l'utilizzo dei nostri siti e delle nostre app. Foreign companies and local professional groups have warned that Hong Kong's financial hub status is being shaken by an intensifying brain drain problem as talent is moving out of the city due to prolonged quarantine and social distancing rules. Small business owners have had a particularly hard time. How Senegal's president defused a political timebomb, Celebrating Pride in the midst of a culture war. US Commerce Secretary Wilbur Ross suspended regulations allowing special treatment to Hong Kong, halting defense exports and restricting the territory's access to high technology products. According to Xiao, many in the crypto industry thought Hong Kong would inevitably adopt the same regulations as mainland China. "What we hear from our community is even echoed by the strongest institutions, which are the banks. Exclusive news, data and analytics for financial market professionals, Reporting by Josh Ye in Hong Kong; Editing by Brenda Goh and Kenneth Maxwell, ChatGPT's explosive growth shows first decline in traffic since launch, Exclusive: PwC Australia ties Google to tax leak scandal, sources say, German industry urges reduced dependency after China export controls, Canada's Quebecor to pull its ads from Facebook, Instagram, Apple loses London appeal in 4G patent dispute with Optis, EU concerned over China export controls on metals used in chips, Meta loses as top EU court backs antitrust regulators over privacy breach checks, Alibaba exploring options for video platforms Youku, Tudou, Bloomberg reports, U.S. Big Tech says it meets EU gatekeeper status, TikTok criticises label. Observers worry that Washington will likely revoke a range of trade and other economic benefits Hong Kong currently enjoys with the US, including the city's recognition as a unique customs territory separate from mainland China. Is Hong Kong still a financial hub after 25 years of Chinese rule "Hong Kong is likely to develop into a Chinese offshore center," Alicia Garcia Herrero, chief Asia-Pacific economist at Natixis, told Bloomberg. Hong Kong will continue to develop as a global finance hub and should not just be viewed as China's offshore financial centre even as it continues to ramp up efforts to support the . Carol Massar and Tim Stenovec host a look back at the best interviews, discussions and more. Theres been a brain drain under way for over a year now, since the protest movement started and the underlying democracy deficit here, the fact that the legislative council and the chief executive of Hong Kong are not democratically elected, that is the main grievance, Hong Kong activist investor David Webb told ABC radio on Saturday. Tam is hopeful that she will be able to secure employment in the financial sector just as quickly as her friends who moved to the Australian city. Local leaders say their focus is removing restrictions on travel fromHongKongto mainland China, which also has strict entry restrictions. How Hong Kong can retain its status as leading financial hub Howie believes capital flight out of Hong Kong will increase as people ask harder questions. In April, China's state-controlled insurance group Ping An bought one of three buildings atop the high-speed train station in the city's West Kowloon district, part of a $5.4 billion development. Hong Kong's financial sector faces talent crunch as expats - Reuters For regional operations, they'll choose places that guarantee legal protection for their staff and operations. Long-time commentator Fraser Howie said the security law was like going into a bookshop and discovering the entire politics section had been removed. A Division of NBCUniversal. A Hong Kong Police Force guard of honour raises the flags of China, front, and the Hong Kong Special Administrative Region. The national security law, which makes it a crime punishable by long jail sentences to agitate against Chinese rule of Hong Kong, adds to those existing concerns. May 29, 2020 2:44 AM EDT S ecretary of State Mike Pompeo announced on Wednesday that Hong Kong was no longer sufficiently autonomous from mainland China an assessment that could threaten the. "Many yellow shops are worried that their propaganda posters will land them in trouble, such as being implicated for inciting subversion of the state. Border closures threaten Hong Kong's financial hub status We have no pipeline anymore, that's really worrying. Wong was rattled when he returned to Hong Kong from the trip. Mainland China has extensive capital controls and often intervenes in its financial system, while Hong Kong has one of the most open economies in the world and a big market for equity and debt financing. While the Morrison government has offered Hong Kongers already in Australia extended visas, there is no plan to go down the UK route and offer a residency path to thousands. With its unique advantage of having the Mainland as hinterland and its extensive global network, Hong Kong has firmly established itself as the dominant gateway to China and a global offshore renminbi business hub. Six months after Hong Kong reopened to the world, the city still faces a steep climb to reclaim its place as Asia's premier finance and tourism hub. "US decertification of Hong Kong SAR's special economic status could pose a further potential negative shock to the Hong Kong economic outlook.". Obviously this is a big burden for the European and international business community in Hong Kong. "Secondly, the personal impact of being away from family and important personal contacts. Labor force is near a decade-low amid population outflow, Economy may contract in 2022 for third time in four years. Hong Kong owes its status as a flourishing financial hub to a number of factors, like the region's rule of law, independent judiciary, relatively low taxes and lack of capital . HONG KONG, April 13 (Reuters) - After years of bankers quitting Hong Kong amid a China security crackdown and tight COVID curbs, the city is rolling out the red carpet to a finance sector tarnished by events elsewhere in a bid to bolster its status as a finance hub - cryptocurrencies. In January we noted more significant constraints on the autonomy of Hong Kongs institutions than previously thought, contributing to a less effective executive and legislative response to the populations demands, Moodys said. The Australian government is also considering its options, which include cancelling a free-trade agreement struck in February and joining with other western countries in accepting refugees from Hong Kong a move that could in turn signal the territorys population is falling as people leave into a full-blown exodus. Critics say Beijing's move is aimed at ending Hong Kong's freedoms enjoyed under a "one country, two systems" formula adopted when it returned to Chinese rule in 1997. Securing Financial Hub Status - CUHK CBS Nearly 40% of business people in the AmCham poll would consider moving in light of China's national security law. Most historians trace its rise as a. Hong Kong Exports Fall as Global Demand Slump Weighs on Economy Insight and analysis of top stories from our award winning magazine "Bloomberg Businessweek". Follow the topics, people and companies that matter to you. In December, its deputy chief executive, Howard Lee, rejected this, saying that the territorys financial system is just too complex and sizeable to be fully understood from a particular perspective. However, many of these are expatriates or Hong Kong people with Australian citizenship looking to return rather than political refugees. To be sure, many remain sceptical on Hong Kong's promise of a stable regulatory regime on cryptocurrencies. Hong Kong, struggling to revive hub status, sells 'China advantage' to Should big tech be able to read people's messages? 2023 CNBC LLC. Chinese firms have been deferring plans for US listings amid mounting tensions between the world's top two economies. Edward Wong cannot forget the moment when he no longer felt safe in the city where he grew up. The 53-year-old businessman from Hong Kong was stopped and searched by the. Hong Kongs national security police arrested four men who had been members of now-disbanded political group Demosisto, South China Morning Post reported Wednesday, citing a person familiar with the case, as authorities kept up pressure on those associated with the Asian financial hubs defunct protest movement. The Hong Kong government "is very serious about building an international virtual asset centre", said Xiao Feng, chairman of Hong Kong crypto exchange HashKey, which saw 13,000 people attend the first day of its Hong Kong Web3 Festival, the biggest conference of the month, on Wednesday. Tung: HK's financial hub status remains healthy The new law will attract those Chinese companies delisting from the US and looking to list nearer home. I needed to take sleeping pills to sleep for half a year. Within hours of President Xi Jinping signing the national security law, backed unanimously by the standing committee of the ruling Communist Party in Beijing, there were dozens of arrests in Hong Kong. What Investors Are Discussing atSummer Parties, Biden Throws Weight Behind Swedens NATO Bid as Summit Nears, Top State Department Official Expected to Join Bidens 2024 Campaign, International School Worth Close to $1 Billion Turns CEO Into Multimillionaire, Billionaire Mike Ashley Adds 150 Million to London Property Bet. The loss of Hong Kong's trade privileges could also mean Hong Kong identity card holders might lose their ability to visit the United States without applying for a visa in advance. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video. This law closes everything down and it could become very, very harsh," Howie, author of "Red Capitalism: The Fragile Financial Foundation of China's Extraordinary Rise," told DW in an interview. Mainland China banned cryptocurrency trading in 2021. And with foreign companies, it becomes a cash management issue. That pace is almost equal to pre-pandemic levels, according to Immigration Department data. The favorable tariff treatment is accorded under the 1992 US-Hong Kong Policy Act. He was never directly involved in the mass protests in Hong Kong that year, although he once spoke to a journalist from the sidelines of one of the citys mass protests that year, which he suspects tweaked Beijings interest. "We have indeed consistently said that China would risk very negative consequences if it went ahead with this law, including for business confidence, China's reputation, public perception in Hong Kong and internationally," she said. Hong Kong's 'zero COVID' policy risks status as financial hub Government data shows more than 89,000 residents have left in the past year. Bankers say business is booming and the exodus of talent does not include those making a bundle from the huge amounts of capital still moving in and out of the city, which is still seen as the international gateway into China. Hong Kong late last month launched an international talent attraction program in a bid to improve the citys image after years of political upheaval and lure global talent back to the city. Many of those who left later returned. Most Read from Bloomberg Xi's . The news has been met with dismay by Hong Kong's business community, who have already felt the strain of more than 18 months of closed borders. But while the target of the law may have been Hong Kongs pro-democracy movement, which has been protesting in the streets of the city-state for a year, it has also spooked a business sector already nervous about Beijings control. Bloomberg, For any financial institution, how can you have a world view without having a China view? Hong Kong's reopening brings scant gains for financial hub At present travelers fromHongKongto the mainland must still undergo quarantine. While mainland China's influence in the territory was clearly on the rise since it returned to Chinese rule 23 years ago, there was a sense that Hong Kong's high degree of autonomy was secure. That scheme meant some Hong Kongers were taking advantage of an opportunity to emigrate even if they were not worried about the political situation. He is based in Tokyo. Meanwhile, Hong Kong continues to bolster its status as the largest global offshore renminbi (RMB) business hub. You dont want to give that up. Insight and analysis of top stories from our award winning magazine "Bloomberg Businessweek". "Chinese companies are by far the most important USD issuers in the Hong Kong offshore market, so most of Hong Kong's external debt is actually debt from Chinese subsidiaries operating from Hong Kong," said Garcia-Herrero. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. While mainland companies will welcome a tougher line in Hong Kong after disruptive democracy protests last year, the broader investment community may well start looking elsewhere. In my adult life, I remember at least three rounds of a so-called brain drain, and Hong Kong survives after each one. ", Frederik Gollob, Chairman of the European Chamber of Commerce agrees: "It certainly won't enhance confidence in Hong Kong to do business from an international business perspective.". But not any more. Highlights from a week-long virtual event bringing Bloomberg Businessweek magazine to life. Romaine Bostick breaks down the day's top stories and trading action leading into the close. Hong Kong has one of the strictest mandatory quarantine regimes of any jurisdiction, with most arrivals having to undergo between 14 and 21 days of hotel quarantine. How Hong Kong's Loss of 'Special Status' Could Hit Business - TIME Webb has been in Hong Kong for more than two decades, making a fortune picking sharemarket winners and a name for himself exposing corporate misconduct through his website, webb-site. Source: Census and Statistics Department. Commission President Ursula von der Leyen said she was working on a coordinated response. The question is, can we attract people to come back? Se non vuoi che noi e i nostri partner utilizziamo i cookie e i dati personali per questi scopi aggiuntivi, clicca su "Rifiuta tutto". Hong Kong, struggling to revive hub status, sells 'China - Reuters Six months after Hong Kong reopened to the world, the city still has a steep climb to reclaim its place as Asia's premier finance and tourism hub. Foreign companies are clearly rattled by the new rules. As China industrialised, its similarly minimalist approach to corporate taxation, coupled with the use of English common law to govern contracts, helped turn it into the worlds sixth-biggest financial centre, thrusting a series of office towers into the skies above the island. He says some Chinese companies have relocated to the mainland during the pandemic and life is difficult for expatriates and business travellers. Speaking to the. "As a national offshore center, it may have some tax benefits, leeway in terms of issuing in dollar or attracting dollar investment. Chan says the present biggest threat to Hong Kongs finance hub status is not China but COVID-19. Hong Kong's labor force has shrunk to the lowest since 2012. Published Sun, Oct 24 202111:44 PM EDT Share Key Points A financial industry group warned that Hong Kong's zero-Covid policy and strict quarantine requirements for international travelers. What, for example, would happen if organizations like CalPERS (California Public Employees Retirement System), the largest pension trust in the US, started to compare investing in China to investing in tobacco in the 1970s.

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