Hong Kong authorities hope the upcoming banking summit will live up to the hype and reinvigorate the city’s status as a reopening financial hub. It faces a handful of roadblocks to success spanning Covid, politics and social-related factors.

Next Monday, Hong Kong will kick off the «Global Financial Leaders' Investment Summit» which will run from November 1 to 3. The event is critical not only because it is the first of its kind in the past three years, due to the city’s strict zero-Covid curbs, but also because it will be a critical opportunity to signal the financial hub’s reopening and readiness for a rebound. 

But a number of challenges lie ahead not only for the summit itself but also for its attendees. From the city’s persistent health restrictions to social and political risks, Hong Kong will need to overcome an uphill battle to demonstrate its resilience. 

On the Back Foot

From the very beginning, Hong Kong’s reopening campaign already started on the back foot. 

While many had hoped for border controls to be fully relaxed in time for the summit, the city has maintained its so-called «0+3» arrangement since September 26. Under this arrangement, inbound travellers are no longer subject to hotel quarantine but still require three days of self-monitoring alongside restricted access to places like restaurants and bars. 

Ex-executive council convenor and National People's Congress delegate Bernard Chan urged the government earlier this month to transition to a «0+0» arrangement and admitted that Singapore had replaced the city as the international financial hub of choice in Asia because it had reopened to the world for over a year. Ex-Hong Kong leader Carrie Lam had also previously insisted that the city could not maintain its hub status without free movement for travellers. 

Two Infected Already

Just days before the kick-off, the Hong Kong summit is already facing new challenges.

Yesterday, the government announced that financial secretary Paul Chan had tested positive for Covid during a six-day trip in the Middle East to woo new investments. While the government said Chan will stay in Riyadh to comply with health rules before returning «as soon as possible», the finance chief separately spoke in an «SCMP» interview and did not confirm if he would make it back in time. Under the current agenda, Chan is scheduled to deliver a keynote lunch speech at the summit on November 2 and an opening address on November 3.

And in the latest, Citi chief executive Jane Fraser was also diagnosed with Covid and has decided not to travel to Hong Kong to attend the event. 

Social Risks

For the others still visiting Hong Kong, there are questions about whether or not these top financial executives will merely attend the event or be allowed exemptions to move freely within the city to meet clients, staff or simply roam around for leisure. 

While there are previous reports that the Hong Kong government may issue such exemptions, it remains to be seen if global banking executives will accept the arrangement, especially after special privileges given to actor Nicole Kidman and JPMorgan CEO Jamie Dimon last year led to public outrage. 

Prior to the introduction of the 0+3 arrangement, the local government had reportedly floated the possibility of individual waivers for visiting bankers to skip quarantine but was rejected by executives due to the social sensitivities involved.  

US-China Tensions

For those who manage to attend the summit and leave Hong Kong unscathed, there may still be pressures awaiting from external factors, including growing US-China tensions.  

American politicians have recently been making a nonpartisan push to urge top US financial executives to reconsider their attendance over the crackdown in Hong Kong as well as refusal to comply with sanctions against Russian assets, such as the 142-meter megayacht of steel billionaire Alexei Mordashov, which was spotted in local waters earlier this month.

«Their presence only serves to legitimize the swift dismantling of Hong Kong’s autonomy, free press, and the rule of law by Hong Kong authorities acting along with the Chinese Communist Party,» said Democrat Representative Jim McGovern in a social media post. 

Singapore Factor

And of course, Hong Kong will also need to overcome challenges from rival hub Singapore which recently surpassed the city as the third leading international financial center, according to a widely cited index by think tanks China Development Institute and Z/Yen Partners.

In addition to its own fintech week from October 31 to November 4 – which also includes Chan as a scheduled keynote speaker on Monday – the Hong Kong summit happens to also overlap with the Singapore FinTech Festival from November 2 to 4. 

While many of the renowned global banking CEOs have committed to attending the Hong Kong summit, such as HSBC’s Noel Quinn or Goldman’s David Solomon, Singapore’s fintech event included a notable feature speaker in Barclays CEO C. S. Venkatakrishnan.