Hong Kong retail data doesn't break out luxury goods separately but the sector was hit hard as China accounted for almost 80% of inbound tourists in 2019. It has been the top piece of conversation across the business community, Tara Joseph, president of AmCham Hong Kong, told Barrons at the time. Tokyo hardly registered, scoring just 1% of the vote, and the Chinese cities of Shenzhen and Shanghai fared little better, taking just 6% and 10%, respectively. A lot of families had nothing in terms of a plan, so they think of it as fire insurance you dont get it because you want a fire but because its a potential problem.. Singapores ranks 23rd. Markets. leaving Hong Kong Strict Covid-19 policies, the erosion of Hong Kongs autonomy by Beijing, and sharp responses from the US government, have helped pull down the number of American firms with regional bases in the city to 254 last yearan 18-year low, according to to Hong Kongs Census and Statistics Department. The US outlet Axios said the company was at risk of exposure to US regulations preventing business dealings with sanctioned entities. The Hong Kong government attracts and supports small US companies like ICG because they represent and share valuable expertise which strengthen the citys position as a hub for international trade and finance. U.S. warns companies that the Hong Kong situation is 'deteriorating'. According to a new study conducted by the European Chamber of Commerce in Hong Kong, over 25% of responding companies aim to totally relocate out of Hong Kong in the coming year, while another 24% plan to partially relocate out of the city. Global companies moving top posts out of Hong Kong: survey But companies were reassessing their presence because of doubts about the reliability of the legal system and curbs on movement. [emailprotected], Shanghai Immediately, some Chinese internet users called for a boycott and e-commerce platforms dropped sales of H&M. Schapira believes hes found one by raising capital for HK firms, investing in their growth, and providing fintech industry expertise for regional and global expansion. Investment firm Vanguard is leaving Hong Kong to focus on mainland China boom By Jill Disis, CNN Business Published 4:32 AM EDT, Thu August 27, 2020 Link Copied! The announcements accompanied a glut of articles in the business press that predicted a brain drain from Hong Kong as disgruntled foreigners decide that enough is enough. This study predates the development of Chinas stock markets, but it does include cross-listed Hong Kong companies. Despite the politics and the pandemic, Joseph said the Chinese market was just too lucrative for ambitious Hong Kong-based executives to miss. JPMorgan Chase & Co. s Ryan Holsheimer, head of cash equity & equity distribution for Asia-Pacific, is leaving Hong Kong after seven years with the firm, adding She has happily settled into the local primary school, where 11 other Hong Kong children have since joined. This is the seventh case reported in 2023. Thats a problem. In 2021, for example, the number of US businesses with regional headquarters in Hong Kong fell to an 18-year low, and this trend is by no means limited to US companies. The Chamber claims that Hong Kong's "greatest advantage"its global connectedness and proximity to mainland Chinahas been "almost completely crippled. Yowin and Eddie felt leaving Hong Kong was in Hayley's best interests. The report didnt seek to explain this pessimism-optimism contradictionwith numerous firms leaving and others expanding their footprintsbut one analyst told Barrons some companies are more elastic in withstanding the current pressures, either because they need fewer executives to travel to tightly restricted Hong Kong, or they dont deal with business matters that could inflame Beijing. The Hong Kong government is pursuing a host of other laws that have caused further alarm. VF Corporation went first. Taxpayer who is about to leave Hong Kong Watch | Gravitas: Covid-19 surge brings Hong Kong to its knees. Foreign companies are vacating Hong Kong offices at a blistering pace. More expats may quit Hong Kong over its tough Covid laws: Survey "(Hong Kong) will never be back to the level it was, like a decade ago, when it was the only, I would say, duty free location where Chinese would go," L'Oreal (OREP.PA) CEO Nicolas Hieronimus told Reuters. You have entered an incorrect email address! This copy is for your personal, non-commercial use only. Urban Outfitters to quit China at Hong Kong has seen a series of drastic changes to its laws, many of which have resulted in businesses leaving or considering an exit from the South East Asian financial hub. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. https://www.wsj.com/articles/hong-kong-global-companies-leaving-protests-china-crackdown-11622998192. The situation in Hong Kong is deteriorating. Although route bans do not affect outbound flights, once a non-Hong Kong airline is restricted from entering It found that 44% of individuals said that they may leave Hong Kong due to its border controls and social restrictions. DOW 34,418.47 0.03%. Terms & Conditions. Who is Miriam Coreguela and why is everyone talking about her? China is investing in and developing projects across the world - how are those moving forward and are they on course to deliver China's goal of becoming the primary global power by 2049. Bloomberg Daybreak, anchored from New York, Boston, Washington DC and San Francisco provides listeners with everything they need to know. But Willie Walsh, director general of the International Air Transport Association, said last month that travel restrictions were leaving the territory increasingly isolated. She said that until recently, the business community there did not have to worry too much. Hong Kong has been in the eye of an economic and political typhoon, and the circulating winds are growing stronger, riskier. It is a moment of inflection, but I dont see Hong Kongs competitive advantages drastically changing in the next five years., ICG sees opportunities in Shenzhen, Shanghai, and Beijing and is monitoring these markets startup and fintech ecosystems with the goal of expanding into these cities. Contact: +85296318262. #1 Booking a flight out of Hong Kong. After the HSBC statement, the then foreign secretary, Dominic Raab, said his government will not sacrifice the people of Hong Kong over the altar of banker bonuses. Nearly half of foreign businesses in Hong Kong are planning to Multinationals and foreign-owned firms are reassessing their situation, but are they running for the exits? Talent is leaving in droves. For non-personal use or to order multiple copies, please contact The Hong Kong government is pursuing a host of other laws that have caused further alarm. Well, just dont say anything Meanwhile, we are watching more of our friends leave because the territory has changed. Tara Joseph, president of American Chamber of Commerce in Hong Kong. .css-16c7pto-SnippetSignInLink{-webkit-text-decoration:underline;text-decoration:underline;cursor:pointer;}Sign In, Copyright 2023 Dow Jones & Company, Inc. All Rights Reserved, anthony wallace/Agence France-Presse/Getty Images, Save up to $15 with TurboTax coupon May 2023, Epic Bundle - 3x Expert Stock Recommendations, 15% Off DIY Online Tax Filing Services | H&R Block Coupon, 50% off + free delivery on any order with DoorDash promo code, Instacart Summer Promotion: Up to 50% off popular stores near you + Free delivery, 20% off your next online order - Walmart coupon code. Comments on US & Chinese laws & regulation, sebastien-goldberg-ymvydfu4lve-unsplashhk.jpg, Hong Kong Business Association in the Midwest, Janet Yellen tells top CEOs the US wants to work with China to tackle urgent global challenges, 'Xi Jinping's guy': Longtime acolyte Li set to be China's next premier. The man is of Mexican nationality and his age As per the latest data, all the IT jobs A sexual abuse victim has sued Visa for her Dummer discharged from Hamlin Hospital; Will continue my rehab at home with more bills, Bob Dylan Has 100% Approved His Biopic A Complete Unknown, Futuro Chili. Tourists from greater China are the main driver of Hong Kong's branded retail and luxury goods market. US Companies Depart Hong Kong As Business Sentiment Sours, In the short term, the focus is on the bi-directionalflow of capital: US investors looking for new growth opportunities in Asia while the Chinese are looking to invest their money outside mainland China. How stable is the rule of law? Leaving Hong Kong? NASDAQ 13,816.77. Imagine Capital Group LLC (ICG) is a boutique investment bank,venture capital firm, and strategy consultant focused on the fintech and financial services industries within Asia, with offices in Chicago and Hong Kong. Businesses reassess presence in territory amid curbs on movement and doubts about legal systems reliability, with many building up offices in Singapore. Smith has been living and working in Hong Kong for more than a decade. Yet the survey wasnt all doom-and-gloom, with a few notable bright spots. Hong Kong For decades, foreign enterprises have reaped the benefits of establishing a presence in Hong Kong, a historically stable and expat-friendly financial centre on the outskirts of mainland China. According to a new study conducted by the European Chamber of Commerce in Hong Kong, over 25% of responding companies aim to totally relocate out of Hong Kong in the coming year, while another 24% plan to partially relocate out of the city. 202-429-0340 Companies leaving Hong Kong rent receipts, copies of tenancy agreements, etc. An investment example that ICG made is TranSwap, a Hong Kong and Singapore-based fintech firm that specializes in business payments, remittance, and collections within Asia and Europe. US companies have long dominated the foreign-firm landscape in Hong Kong, having more regional headquarters there than any other nation. The largest number of people last year left Hong Kong for good since records began, cutting its population by 1.2%, according to official data, and some believe the number will be higher this year. Yet, you don't find the breadth and depth of mono-brand stores in Hainan that you can find in Hong Kong," Luca Solca, managing director for luxury goods at investment management firm Sanford C. Bernstein, told Reuters. Sony Interactive Entertainment moved regional executives to Singapore. The question is on the table. She joins a growing list of American expats who have either left the territory or are pondering going. "The situation in Hong Kong is deteriorating. HONG KONG, March 7 (Reuters) - Hong Kong, one of the world's top luxury shopping destinations, is losing its lustre as high-end retail properties go vacant and famous foreign brands reduce exposure to the city in favour of opening new outlets in mainland China. Among the American expats surveyed by the American Chamber of Commerce, 40% said they wanted to leave, chiefly because of COVID restrictions. The U.S. and other countries including the U.K. criticized China for undermining Hong Kong's autonomy. Over 30% of have had to delay new investments in Hong Kong, and 30% cant fill senior executive roles. These rules are aimed at particular sectors, and I dont believe they are intended to disrupt or stifle the entrepreneurial ecosystem or the venture asset class. Families wave goodbye at the departure gates of Hong Kong's International Airport. Some US Companies Are Leaving Hong Kong Key Points President Joe Biden said his administration will issue an advisory to warn American companies about the risks of doing business in Hong Kong. The government of Hong Kong on Wednesday objected to U.S. media reports that several large tech companies are threatening to pull out of Hong Kong over new laws that would criminalize doxxing, the malicious exposure of private data, and hold platforms like Facebook, Twitter, and Google liable for allowing the activity. The arrival of Covid-19 and numerous lockdowns put even more pressure on the two cities. While Beijing has denied all accusations of human rights abuses in the region, last summer the US Senate passed a bill to ban imports from Xinjiang. Hong Kongs transport and logistics and the financial services sectors remain largely optimistic, AmCham found. Hong Kong continues to have a robust and hearty infrastructure of values, practices and institutions that could not contrast more starkly with those of the mainland system., Now, packing up and leaving the city after more than 20 years there, Joseph listed dizzying changes since that op-ed. Over 10% of them decided to leave. This is the seventh case reported in 2023. Many foreign businesses see reason to select a period of 12 consecutive months as the common leave year for all employees e.g. Over that period, Hong Kong suffered around a 30% plunge in overall retail sales compared to 2018 levels, largely due to a tumble in mainland visitors because of travel restrictions. They will play the game with the Chinese government. She has worked for Reuters in London, Beijing and Shanghai before moving to Hong Kong in 2013. See here for a complete list of exchanges and delays. If the forces pulling people towards Singapore have been overstated, so have those pushing companies out of Hong Kong, which has advantages that are nearly impossible to reproduce elsewhere. That outstripped total Hong Kong retail sales from a peak hit in 2013 at HK$494.5 billion ($63.0 billion), according to the city's statistics department. Its something new.. If you listen to boardrooms across the globe they cannot avoid this discussion whether or not to stay. Opponents have criticised its broad scope as draconian. July 12, 2020 12:00 PM. Singapores overall population declined by 4.1% in the year to June 2021, driven by this fall in foreign employeesa downturn that is considerably sharper than Hong Kongs, where the population fell by 1.4%. On the subject of people leaving Hong Kong, Lam said its their individual freedom to enter and to exit.. Of the companies surveyed, 26% said they were considering relocation. This Global Companies are Leaving Hong Kong Only 9% of AmCham member companies surveyed predict an improved business environment over the next year. It found that 44% of individuals said that they may leave Hong Kong due to its border controls and social restrictions. Hong Kong After all, capital flows dont have to wear a mask; money doesnt have to wear a mask., Sign up to the daily Business Today email or follow Guardian Business on Twitter at @BusinessDesk, Original reporting and incisive analysis, direct from the Guardian every morning, 2023 Guardian News & Media Limited or its affiliated companies. Some companies have already announced they are leaving, such as the media outlet Initium, which is relocating to Singapore. Hong Kong To most players, they are just stuck.. It has always been open to foreign workers, who can send their kids to world-class schools, dine at first-rate restaurants, and fly to almost anywhere from its famously efficient airport. The divergence may grow as new rules from Chinese regulators make it more difficult for companies to list on foreign exchanges. Yes, they can have their concerns, and some could move to Singapore or South Korea, but their businesses are fixed pipelines. Hong Kong Many so-called high-net-worth individuals expected the crackdown to come, he said, but were caught by surprise when the mainland authorities used the pro-democracy protests in Hong Kong that blew up in 2019 to push through the national security law and arrest dozens of activists for alleged sedition. (2 min) Apprehensive about Hong Kongs future as the best place to do business in China and beyond, multinational firms are pulling up stakes, adding to HONG KONG -- More than a third of global fund management companies have moved regional and global posts out of Hong Kong as harsh COVID policies deter hiring, according to a new survey. VF Corporation Hong Kong's competitiveness rank may drop due to 'political instability': IMD, U.S. sanctions on seven Chinese officials, promises a "high degree of autonomy" to Hong Kong. Morgan Stanley (MS.N) forecast Hong Kong visitor numbers this year will reach just 70% of 2018 arrivals. Some Hong Kongers Are Leaving But leaving Hong Kong Since Beijing imposed the national security law in the summer of 2020, executives say there has been a growing sense of uncertainty among businesses, both local or foreign. President Joe Biden said his administration will issue an advisory to warn American companies about the risks of doing business in Hong Kong. Investment firm Vanguard is leaving Hong Kong to focus on mainland China boom By Jill Disis, CNN Business Published 4:32 AM EDT, Thu August 27, 2020 Link Lastly, it acknowledges the risk of repercussions from the Chinese government but emphasizes that failure to comply with US sanctions could result in civil and criminal penalties. Everyone is walking a fine line here, and Im afraid things arent going to get better, said Prof Bhaskar Chakravorti, dean of global business at the Fletcher School at Tufts University in Boston. International companies are being forced to reconsider their future in Hong Kong as Chinas crackdown on civil liberties and the freedom of media and tech companies continues to gather pace, according to leading business figures in the region. China fears losing control over its national security and worries about domestic and foreign companies running amok with sensitive personal data. Visas for expat financiers fell to record lows in 2020, but the flow from the mainland is picking up pace. leaving Hong Kong The Hong Kong Monetary Authority said in February that the city saw net inflows of capital in 2020, and the number of asset management companies increased from 1,808 in 2019 to 1,878 in 2020. We want to hear from you. See here for a complete list of exchanges and delays. Data is a real-time snapshot *Data is delayed at least 15 minutes. Hong Kong pro-democracy newspaper Apple Daily was forced to shut down after authorities froze the company's assets under the law, leaving it with little resources to sustain operations. Hong Kong Nearly half of all European businesses in Hong Kong are considering relocating in the next year, according to a new report. Late last year, the US short-term holiday rental company Airbnb was found by US media to be listing more than a dozen properties on land owned by the Xinjiang paramilitary corporation, which was sanctioned by Washington over its alleged involvement in mass human rights abuses. Powered and implemented by Interactive Data Managed Solutions. Recently, he also became a board member of the Hong Kong Business Association in the Midwest. The group owns and retails a portfolio of global consumer brands including Anthropologie, Free People, Terrain, Nuuly and Menus & Venues. Among the companies withdrawing are, according to the Journal: VF Corp. shut down a 900-person Hong Kong office after 25 years. Tom Schapira, ICGs founder and partner, spent time in the region both working and living over the past two decades. Although Singapore pursued its own COVID-zero policy for much of the pandemic, since August last year it has been gradually reopening. But in many ways Hong Kong is still a big business hub.
