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Struggling Hong Kong seeks comeback with bank summit, rugby | News

Hong Kong, China – Simon Friend, 35, was working from home in Amsterdam last month when he heard whispers that Hong Kong would finally reopen to the world.

You, a fan of the Hong Kong Rugby League, the city’s biggest sporting event, can’t wait to book a flight.

The tournament, held from November 4 to 6, will take place for the first time in two years after Hong Kong lifted some of the world’s strictest COVID-19 regulations, including mandatory hotel quarantines. for incoming guests.

“This will be my 25th Hong Kong rugby field, it’s safe to say I’m a big fan,” Friend told Al Jazeera.

“It’s been almost two years since I met friends and family there. Not having the hotel quarantine plus being able to attend Sevens was a no-brainer for me. Mutually beneficial “.

He added: “The Sevens hosts the best party of the year in Hong Kong every year. “It’s the best excuse to have a few glasses of wine and wear a chic dress and party.”

A rugby fan wearing a horse head mask walks in the audience stands during the final day of the three-day Hong Kong Rugby Sevens tournament in 2013.
Hong Kong Rugby Stadium attracted tens of thousands of visitors from all over the world before the pandemic hit [File: Tyrone Siu/Reuters]

The Hong Kong government hopes that this sporting event, together with a international banking summit begins Tuesday, will signal that the city is opening for business amid concerns about its status as an international financial hub.

However, visitors to the city will have to endure long-abandoned restrictions elsewhere, including multiple COVID tests, mask-wearing requirements, and a three-day surveillance period during which locations Spots such as restaurants and bars are prohibited.

What’s to come will see a city in decline, its economy battered by the double shocks of a harsh pandemic and a far-reaching Beijing-led crackdown on political dissidents. ants.

Hong Kong’s retail and tourism sectors were reeling from pro-democracy protests in 2019 as the government’s harsh response to COVID-19 plunged the city into its second recession in three years.

Hong Kong’s “non-active COVID” policies, including hotel quarantines, have severely disrupted the operations of businesses in the city, posing a record the exodus of skilled professionals from the city.

Financial firms such as Citigroup have moved some key staff and functions out of Hong Kong, while US fashion giant VF Corp and French IT services firm Capgemini have moved their regional headquarters. their area to Singapore.

‘Devastated’

Established in 1976, the Hong Kong Rugby Sevens was by far the city’s biggest money-spinning sporting event before the pandemic, attracting tens of thousands of visitors from around the world.

For the Hong Kong Rugby League, which relies on the Sevens for 95% of its annual revenue, the league’s return is seen as a matter of life and death.

Robbie McRobbie, CEO of the Hong Kong Rugby Federation, told Al Jazeera: “The past three years have been devastating for the Union and the rugby community.

“Without a tournament since 2019, we have accumulated over HK$250 million [$31.8m] losses resulted in half of our employees losing their jobs. “

McRobbie said the competition is an important signal that the city is “recovering” and open for business.

“Normally we only sell 20,000 tickets locally, but we’ve sold around 26,000 tickets, so we’ve gone above that – we’re happy with the domestic demand and appreciate the support continuity of the local community,” he said.

However, McRobbie said the restrictions – including requirements for testing and wearing of masks at the event itself – would deter international visitors, which typically make up about half of the 40,000 audience.

“Our fans love to enjoy Hong Kong’s nightlife when they come to town,” he said.

Allan Zeman, a real estate tycoon dubbed the godfather of the Lan Kwai Fong party district, says the end of the quarantine, while “a breath of fresh air”, is not enough to attract returning visitors. Hong Kong.

“Tourists are definitely the last piece of Hong Kong’s puzzle, but they won’t come back in numbers under the ‘0 + 3’ limit,” Zeman told Al Jazeera, referring to the three-day surveillance period. for visitors to the place are prohibited them from locations such as restaurants and bars.

Zeman, who is also a government adviser, believes Hong Kong leader John Lee may have erred on the conservative side due to the recent Communist Party Congress in China.

“No one wants a chance to upset [Beijing] that week,” Zeman said.

“I think the government here has decided that this is not the right time to do ‘0+0’, that ‘0+3’ is already too much that they can push right now.”

Skyline view of Hong Kong banks.
The Hong Kong government hopes the November 1-3 banking summit will signal the financial center is open for business. [File: Bobby Yip/Reuters]

Banking executives and other financial leaders attend the Global Financial Leaders Investment Summit, a banking summit taking place November 1-3. Measures will be taken to remedy the limitations faced by other visitors.

In a statement, the Hong Kong Monetary Authority (HKMA), host of the Global Financial Leaders Investment Summit, said “infection control arrangements” approved by the government will be made to provide the “necessary facilitation” to the participants. summit and conduct business activities. The HKMA emphasized the importance of live events to allow guests to meet employees and customers and form relationships.

With the exception of JPMorgan Chase CEO Jamie Dimon, who controversially received an exemption from the city’s quarantine rules at the height of the pandemic, the summit will mark the first time several Wall Street’s biggest names have come face-to-face in the financial hub since the pandemic began.

Zeman, who will be attending the summit, said the event was a “vote of confidence for Hong Kong”.

“These organizations,” says Zeman, “always see Hong Kong as their headquarters in Asia.”

Zeman said Hong Kong’s location at the gateway between East and West makes it the ideal location for such an event.

“China is too big and too important a market for any banks in the world to turn their backs on them,” he said.

Others are less optimistic.

Martin Young, a professor at Massey University in New Zealand and chair of the Asian Shadow Financial Regulatory Commission, said a partial reopening of Hong Kong would not be enough to revive the economy this year.

“The most important is [Hong Kong] to open up as quickly as possible,” Young told Al Jazeera. “The removal of all anti-COVID measures will certainly have a positive impact on domestic consumption and visitor spending, but that is only part of the problem facing Hong Kong.”

With the economic situation worsening and calls for an end to all restrictions growing louder, Hong Kong Chief Executive John Lee has introduced measures to attract talent and investment, including a $30 billion fund. Hong Kong dollars ($3.8 billion) to support business in the city.

Hong Kong Chief Executive John Lee waved as he entered the chamber of the Legislative Council in Hong Kong.
Hong Kong CEO John Lee has launched a series of measures to attract talent and invest in the city [File: Vernon Yuen/AP]

Gary Ng, a senior economist at Natixis, says such announcements, while welcome, are backstop measures.

Ng told Al Jazeera: “It will be less costly for the government and society with a fully reopened business environment.

“With another fiscal deficit year, the Hong Kong government may not be able to spend more and will have fewer resources to deploy for long-term problems if growth does not recover.”

Investor confidence in the city’s ability to navigate the crisis has waned. Reports on the slowing Chinese economy and delayed economic data last week sent the Hang Seng index falling to 15180 – its lowest level since the 2009 financial crisis.

Ng said the government is responsible for “80% of the recession risk it is facing”.

“While the government cannot control policy in mainland China, it can still tailor its approach by removing all COVID-related restrictions.”

Young said the city should fully transition to living with the virus like the rest of the world, including rival Singapore, which last month took Hong Kong’s place as Asia’s top financial hub on the Index. Global Finance 2022.

“Can Hong Kong handle COVID better? It is much easier to identify the best method in hindsight but if there is a place where one can say the best, I would leave that to Singapore,” said Young.

“In my view, now is the right time for Hong Kong to follow Singapore’s lead in dealing with COVID.”



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