Expats Abandoning HK's Financial Sector Due To COVID, Strict Laws

Late last year, Tania Sibree quit her well-paid job as a financial services lawyer in Hong Kong and returned to Australia rather than live a moment longer with the city's strict coronavirus restrictions, Scott Murdoch and Kane Wu reported for Reuters.

Photo Insert: Hong Kong's financial district

Hong Kong has only had about 13,000 coronavirus infections out of a population of 7.4 million, much lower than most places in the world. But it is following Beijing's "zero-COVID" policy rather than adapting to life with the virus.

It has had stiff quarantines in place for two years, and last year introduced some of the strictest entry rules in the world, allowing only residents to return to the city and mandatory hotel quarantine of up to three weeks for arrivals from most countries, regardless of vaccination status, paid for by the travelers themselves.

However, "zero COVID" is no closer – 140 new infections were reported in Hong Kong on Sunday - and there are no signs of the government easing those restrictions. As a result, more expats are thinking of leaving, and global banks, asset managers, and corporate law firms are facing up to many of their staff exiting after annual bonuses are paid out in the first three months of the year, headhunters and industry executives told Reuters.

More than 40% of members recently surveyed by the American Chamber of Commerce in Hong Kong said they were more likely to leave Hong Kong, with most citing international travel restrictions as the leading factor.

Hong Kong’s population declined 1.2% between mid-2020 and mid-2021, with more than 75,000 people leaving the city, according to Hong Kong’s Census and Statistics Department.

Since September, Hong Kong has had five months of consecutive net outflow in travel, immigration department data shows. The total number of visa applicants from all countries under the general employment policy fell by a third last year to 10,073. Applicants for the financial services sector were down 23%.

"The proposition of bringing people into Hong Kong is not happening," said John Mullally, regional director, southern China, and Hong Kong financial services at headhunter Robert Walters.

WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic