Border closures threaten Hong Kong’s financial hub status

Border closures threaten Hong Kong’s financial hub status

Last week, Hong Kong doubled down on its Covid-19 restrictions – already among the strictest in the world. 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.

The city’s leader, Carrie Lam, announced that almost all exemptions from quarantine for overseas and mainland travellers would now end.

She said this was to speed up China reopening to the region, but for some businesses, it’s pushing them over the edge. Ms Lam has previously said that opening to mainland China is “more important” than [opening up] elsewhere.

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.

There have been a few exemptions. Diplomats, business leaders and some mainlanders with Hong Kong resident cards have been able to skip quarantine, or isolate at home. But not any more.

“We are caught in a sort of dilemma because in order to resume some quarantine-free travel with the mainland we have to ensure our anti-Covid 19 practices are more in line with the mainland practices,” Ms Lam told reporters on Tuesday.