USCBC member companies show no signs of pulling out, even though compliance costs are likely to mushroom. Its getting more and more difficult to move. Switzerland, Italy, and Singapores numbers are steady. Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century. The Hong Kong government is pursuing a host of other laws that have caused further alarm. 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 Hong Kong will remain a key retail market for VF and its brands. Foreign companies started leaving Hong Kong earlier, but the latest events pushed even more of them to companies [emailprotected], Shanghai The US outlet Axios said the company was at risk of exposure to US regulations preventing business dealings with sanctioned entities. Implementation of the national security law last year followed months of pro-democracy protests that sometimes turned violent. Farah Master is a Senior Correspondent at Reuters where she focuses on health, demographics and the environment in China. Hong Kong has only one real rival for businesses thinking about leaving | CNN Business. Thats a problem. That compares to 26% of the companies surveyed Did Xi Jinping personally warn Vladimir Putin against nuclear attack in Ukraine? Turkey in Talks to Sell Izmir Port Operating Rights to Gulf Investors, Exxons Meager Bonuses Make Attracting More Traders Difficult, ECB Says Consumer Inflation Expectations Continue to Decline, Turkeys Inflation Letup Still Intact But at Risk From Lira, Saudi Arabia, UAE Business Conditions Improve Even as Costs Rise, Rakuten Unit Listing News Fails to Dispel Share Market Caution, Tesla Tests the Limits of Elon Musks Minimal Model Strategy, Zuckerberg Under Fire in China After Report of Quest Sale Talks, Chinas BYD Joins Latin AmericaLithium Rush to Feed Electric-Car Switch, HSBC Tests Quantum Tech in London to Guard Against Future Hacks, US to Curb China Access to Cloud Services Like Amazon, WSJ Says, Will AI Take My Job? A total of 5,082 people departed Hong Kong on Sunday, the most since the city was hit with its most severe and far-reaching wave of Covid. Is it safe to have R&D for an international company in HK? Before Mr. Chans departure from Hong Kong (1) Notify the IRD by filing a clearly and properly completed IR56G on or before 4 June 2023 (i.e., not later than 1 month before the expected date of departure). NASDAQ 13,816.77. .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. Gollob said that most international firms were in a sit and wait pattern to see what happened next in terms of new laws or further restrictions on freedoms, but the acceleration towards China is everyones gut feeling. We have to try to keep our number of expats below a certain level, and we have reduced that number over the last two years. leaving Hong Kong Facebook, Twitter and Google are among the latest companies that may leave the special administrative region. Last month, the American Chamber of Commerce in Hong Kong hunted for an answer. China fears losing control over its national security and worries about domestic and foreign companies running amok with sensitive personal data. Last March, the Swedish clothing chain H&M was singled out by Chinas state media and faced a huge backlash after it expressed concern about Beijings alleged use of forced labour in cotton production in Xinjiang. Glitzy Hong Kong shopping streets once packed with luxury stores that attracted 56 million visitors in pre-pandemic 2019 now have about half of their shop units sitting vacant, according to property management companies. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. Yes, they can have their concerns, and some could move to Singapore or South Korea, but their businesses are fixed pipelines. Foreign employees may be leaving, but many companies are realizing they can do just fine without them. It found that 44% of individuals said that they may leave Hong Kong due to its border controls and social restrictions. Hong Kong Booking tickets out of Hong Kong may be a challenge, as the government can suspend flights on a certain route for 14 days if four or more passengers on the route test positive within seven days. (modern). Despite headwinds from the slowdown in its property market and President Xi Jinpings crackdown on Chinese tech companies, the countrys economy grew by 8.1% in 2021 after China managed to keep its COVID cases low and its domestic market open. Of the companies surveyed, 26% said they were considering relocation. companies But companies were reassessing their presence because of doubts about the reliability of the legal system and curbs on movement. One senior finance industry executive said Hong Kong had seen off many existential challenges over the years, such as the 1997 handover and the Sars outbreak, but was well-practised in adapting and reinventing itself. I dont see any consequences with the current political environment in ICGs business areas, he said. Alina Smith (not her real name), a senior executive from the US, said that although the law does not directly affect most firms, the aftermath of its passage has created more uncertainties in the operating environment and had left firms facing a very special conundrum. Taxpayer who is about to leave Hong Kong Some companies have already announced they are leaving, such as the media outlet Initium, which is relocating to Singapore. said it was moving its regional operations, since August last year it has been gradually reopening, created disadvantages for Singaporeans in the job market, Visas for expat financiers fell to record lows in 2020. Apprehensive about Hong Kongs future as the best place to do business in China and beyond, multinational firms are pulling up stakes, adding to uncertainty about the outlook for one of the worlds premier commercial cities. The proposed law falls into the massively controversial national security law that sparked 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. Joseph has recently departed Hong Kong, and Otis Elevator managing director Joseph Armas will serve as the chambers 2022 leader. select a period of 12 consecutive months as the common leave year for all employees e.g. The law matches a series of crimes including secession, subversion, terrorism and collusion with foreign forces, with penalties as severe as life in prison. 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. According to a recent survey by the American Chamber of Commerce, 44% of members were thinking of leaving Hong Kong due to the territorys strict pandemic rules. You have successfully joined our subscriber list. The Hong Kong government is pursuing a host of other laws that have caused further alarm. So what are you going to do? Hong Kongs population fell 0.6% in 2020, the first annual decline in 18 years, and anecdotal evidence suggests departures have continued. The US is forgetting the differences between Hong Kong and China. Two years after setting up an office in Hong Kong, he attended a Chinese New Year party hosted by the Chicago office of the Hong Kong Trade and Development Council (HKTDC), an arm of the Hong Kong government that operates offices in many countries. Visas for expat financiers fell to record lows in 2020, but the flow from the mainland is picking up pace. Companies leaving Hong Kong Many luxury brands expanded in mainland China during the pandemic, opening stores in far-flung locations to reach consumers unable to travel. ", Watch | Gravitas: Hong Kong's Covid-19 outbreak triggers mass exodus. US businesses in Hong Kong are caught between a rock and a hard place. Hong Kong Government Nobody that I know in finance thinks their business is drying up.. Despite the increasing investment in the mainland, some are still hopeful about the long-term outlook for Hong Kong as global economies and holiday travel recover. Beijing said the law is aimed at prohibiting secession, subversion of state power, terrorism activities and foreign interference. 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. Companies leaving Hong Kong are eyeing Singapore For Joseph, Hong Kongs stringent zero-Covid rules were the final trigger for her departure. Who is Miriam Coreguela and why is everyone talking about her? The Hong Kong I have known for 20 years has been going, going and gone. We cant just put people on a plane.. Companies S&P 500 4,455.59 0.12%. Hong Kongs transport and logistics and the financial services sectors remain largely optimistic, AmCham found. Biden says U.S. will warn companies about Hong Kong situation In January 2021, the parent of fashion brands The North Face, Timberland, and Vans said it was moving its regional operations out of Hong Kong. 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. Canton Road, the most famous shopping street in Tsim Sha Tsui, has a vacancy rate of about 53%, according to global property company Savills (SVS.L). Despite the blows that Hong Kong has suffered to its reputation as a good place to do business, there remain many compelling reasons why the city has not seen any prominent multinational companies pull up sticks completely. A paradigm shift? In 2019, the anti-extradition bill protests kicked things off then we had worsening US-China relations now theres Covid.. According to Emily Tan of Kerry Consulting, an executive-search firm, we see an increase of at least 20% in the applicants to Singapore-based roles, with a combination of both expats and residents in Hong Kong.. It found that 44% of individuals said that they may leave Hong Kong due to its border controls and social restrictions. For now, there seems to be a fissure between the sentiments of individuals and companies in Hong Kong. Setting up a company takes as little as 15 minutes. ICGs investment banking business focuses on private equity and debt capital, raising $10-$100 million for fintech firms. Copyright 2020-23 Nation World News All Right Reserved. The city is a former British colony that returned to Chinese rule in 1997. 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. Shibani Mahtani. 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Tourist destinations such as resort island Hainan and Macau also have become popular alternatives as China sought to develop multiple duty and tax free destinations. 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.. It is governed under a "one country, two systems" framework that promises a "high degree of autonomy" to Hong Kong. WebFor the recent AmCham report, which surveyed 262 U.S. companies in Hong Kong, American sentiment remains pessimistic. Yet the survey wasnt all doom-and-gloom, with a few notable bright For non-personal use or to order multiple copies, please contact Hong Kong reports 7th melioidosis case of 2023 Nearly half of all European businesses in Hong Kong are considering relocating in the next year, according to a new report. VF Corporation went first. Bidens approval rating plummets to new low as Trump gains momentum. David Lesperance, a lawyer based in Europe who specialises in helping wealthy people relocate from Hong Kong, China and other jurisdictions such as Saudi Arabia where they feel they and their families may face a sudden change in their legal status, has seen a big increase in demand for his services since Beijing started to flex its political muscle in Hong Kong. Well, just dont say anything Meanwhile, we are watching more of our friends leave because the territory has changed. Sony Interactive Entertainment moved regional executives to Singapore. The largest number of people left Hong Kong for good last year since records began, according to official data. For the past 60 years, Hong Kongs population has grown nearly every year, from some 3.2 million She has a Masters in Development Studies from the London School of Economics. 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. Meanwhile, only 5% of the surveyed companies that are headquartered in Hong Kong said they were planning on moving their HQs elsewhere. Kaikos announcement reverses the recent trend of companies leaving Hong Kong for Singapore, due to the formers political instability. Such conflicts are not limited to Chinese territory. [emailprotected], Beijing The most obvious is its relationship with China and the opportunity to hitch a Hong Kong-based company to the mainlands juggernaut of an economy. It's of great concern to the international business community," he added. Statutory Leave Types in Hong Kong Hainan, which reported visitor growth even during the pandemic, saw arrivals rise 11% between Jan. 8 and Feb. 15 compared to the same period a year earlier, according to the government. Families wave goodbye at the departure gates of Hong Kong's International Airport. An employer should not include in an employment contract a term to forego all or any of his employees Chinese officials and state media often said "external forces" were behind the Hong Kong protests. Urban Outfitters has told its Tmall customers that its products would be removed from sale on September 12 and customer service would be discontinued after September 24. The southeast Asian city-state has many of the same advantages that have long lured international businesses to Hong Kong. Nearly half of the European companies in Hong Kong plan to fully or partially relocate operations and staff out of the city, a new survey suggests, in the latest sign that This is the seventh case reported in 2023. Pornhub video of minor under 13 published on Pornhub for which visa will be tested. Massive phosphate deposit found in Norway, could meet global battery demand for 100 years. Investment firm Vanguard is leaving Hong Kong to focus on - CNN Notably, as the rules are applicable around the world, employees at internet companies in Hong Kong could get With so many white collar professionals seemingly heading for Hong Kongs exits, one pressing question has emerged: where will they land? President Joe Biden said his administration will issue an advisory to warn American companies about the risks of doing business in Hong Kong as China tightens its hold on the semi-autonomous region. 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. Hong Kong
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