The number of US companies with regional headquarters in Hong Kong has dropped below Chinese firms for the first time in at least 31 years.
There were 240 US companies with regional hubs in the administrative region as of June 1, down 14 from the previous year and the lowest number since 2002, according to data released by the Hong Kong Census and Statistics Department dating back to 1991. Chinese firms with regional headquarters in Hong Kong fell by one to 251, the data show.
Strict COVID-19 curbs, a national security campaign and a struggling economy have dented Hong Kong’s appeal as an international finance center, with businesses shifting resources to other centers such as Singapore. While Hong Kong has removed its most onerous pandemic measures, such as hotel quarantine, visitors are still subject to a series of restrictions, and the border with China remains closed.
Photo: REUTERS
Hong Kong Chief Executive John Lee (李家超) acknowledged in his policy address last month that the city had lost 140,000 workers over the past two years, and made attracting overseas talent one of his top priorities.
The number of visas granted to overseas workers in Hong Kong fell by about two-thirds during the COVID-19 pandemic. Travel has yet to pick up. Cathay Pacific Airways Ltd (國泰航空), Hong Kong’s flag carrier, flew only 16 percent of its pre-pandemic passenger capacity in September, while Singapore Airlines Ltd was back to about 73 percent of its 2019 levels, similar to other major global operators such as British Airways PLC and Deutsche Lufthansa AG.
Chinese firms accounted for 18 percent of Hong Kong’s regional headquarters, compared with 17 percent by US companies, the data showed.
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