Corona Virus Affects Financial Organizations in Hong Kong

The Corona virus affects Financial Organizations in Hong Kong. Hong Kong is taking precautionary measures to curb the Corona virus spread. The Authority ask for special work arrangements at financial organizations as coronavirus spreads. The Hong Kong stock market is expected to reopen on 29 January after being closed for two days for the Chinese New Year holidays.

29 January, 2020 | AtoZ Markets – The concerns are growing about the ongoing Corona Virus epidemic in China. The virus spread to several other countries. Hong Kong has implemented a wide range of restrictions to control the spread of the coronavirus. The country is also limiting the number of mainland Chinese travellers entering the territory.

The government said that civil servants who are not involved in emergencies or essential services should work from home until the week. It also recommended that companies in the private sector undertake similar work arrangements if possible.

Hong Kong Authorities Call for Special Work Arrangements

Hong Kong stocks, futures and derivatives markets will normally trade from 29 January after the Chinese New Year holidays.

The financial secretary met with the financial regulators and Hong Kong Exchanges and Clearing Limited on 28 January. Moreover, the financial secretary was briefed on the emergency arrangements, the preparation and coordination of the institutions responsible for Hong Kong financial markets.

The Finance Secretary appealed to financial organizations to make special working arrangements for their employees. The secretary also urged to work together to reduce the risk of spreading the new coronavirus in the community.

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Hong Kong Slash Border Travel

Hong Kong is a global financial centre for many multinational corporations. The country is one of the largest transportation centres in Asia. However, Hong Kong is drastically cutting back on travel via road, rail and ferry links between the city and mainland China to reduce the coronavirus spreading.

Hong Kong chief executive Carrie Lam said the new measures would significantly reduce the number of visitors from mainland China entering the semi-autonomous city. But she said it would not be practical to close all the borders between Hong Kong and China.

Hong Kong has eight confirmed coronavirus cases. Ms. Lam urged Hong Kong residents who currently in China to return home immediately. Moreover, they should stay home for 14 days to prevent spreading the virus further.

The Corona virus already affects Financial Organizations and economy in Hong Kong. Now, the new measures may put pressure on Hong Kong’s economy. The economy is already in recession after months of anti-government protests that have hit the tourism and retail sector. Moreover, slower Chinese economic growth and US-China trade tensions also weighed on Hong Kong.

The loss of tourist spending, particularly in mainland China, during the Chinese New Year, is likely to add further pain to Hong Kong’s economy.

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