Tag Archives: Kongs

Hong Kong’s Hang Seng index rises around 5%; Asia markets mixed ahead of U.S. jobs report

The Hong Kong Stock Exchange in Hong Kong, China, on Wednesday, July 13, 2022.

Paul Yeung | Bloomberg | Getty Images

Qantas’ shareholders meeting and Singapore’s retail sales data are also slated for Friday.

The monthly U.S. employment report is scheduled to be released later. Economists expect 205,000 jobs were added in October, and forecast the unemployment rate remained at 3.5%, according to Dow Jones.

Overnight, U.S. stocks declined for a fourth consecutive session. The Dow Jones Industrial Average slid 146.51 points, or 0.46%, to close at 32,001.25. The S&P 500 lost 1.06% to finish at 3,719.89, while the Nasdaq Composite shed 1.73% to settle at 10,342.94.

—CNBC’s Samantha Subin, Carmen Reinicke contributed to this report.

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Hong Kong’s largest IPOs for 2022 Onewo and Leapmotor trading debut

A gong inside the Hong Kong Stock Exchange. China Vanke’s subsidiary Onewo and EV maker Zhejiang Leapmotor Technology began trading on the Hong Kong market on Thursday.

Paul Yeung | Bloomberg | Getty Images

Leapmotor and Onewo, among Hong Kong’s largest completed initial public offerings of the year, dropped on their first day of trade in the city on Thursday.

Chinese electric vehicle maker Leapmotor’s shares tumbled as much as 32% from its offer price of 48 Hong Kong dollars ($6.11) per share. It last traded 27.7% lower.

Shares of Onewo fell 7.9% from its offer price of 49.35 Hong Kong dollars ($6.29) per share in early trade, and was last 4.76% lower.

The moves come after the companies’ shares reportedly fell in grey market trading the previous day.

The broader Hang Seng index was last up 1.49%.

The retail tranche of shares for both initial public offerings were undersubscribed, according to their respective filings. Around 82% of Onewo’s shares for the local market were bought, and only 16% of Leapmotor were purchased, the filings said.

Unsold shares were allocated to international buyers.

Onewo, a subsidiary of property developer China Vanke, raised 5.6 billion Hong Kong dollars ($713.5 million), while Leapmotor raised 6.06 billion Hong Kong dollars ($771.7 million).

Data from the Hong Kong Exchange (HKEX) show there were 48 new listings in Hong Kong from January to August in 2022, raising a total of 56 billion Hong Kong dollars ($7.1 billion) – a steep drop from the same period in 2021, in which there were 69 new listings that raised 271.4 billion Hong Kong dollars ($34.6 billion).

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Hong Kong’s Hang Seng rises 2%, leads Asia markets higher after Powell’s inflation comments

HSBC says China’s latest inflation readings allow PBOC to maintain accommodative monetary policy

China’s latest inflation figures give the People’s Bank of China room to maintain its current monetary stance, HSBC said in a note.

“The moderation in price pressures gives the PBOC room to stay accommodative,” greater China economist Erin Xin said.

Xin added that the central bank is likely to further ease using structural tools such as “additional re-lending quotas for focus areas like manufacturing and green investment.”

—Jihye Lee

China consumer price index rises 2.5% in August, misses estimates

China’s consumer price index rose 2.5% year-on-year in August, lower than the 2.7% figure recorded in July, data from the National Bureau of Statistics showed, missing a Reuters poll forecast of 2.8%.

Producers price rose 2.3% for the month, also slower than a rise of 4.2% for July and missing estimates of 3.1%.

A report by Nomura earlier this week said 12% of China’s total GDP was impacted by Covid controls on a weighted basis — up from 5.3% last week.

Jihye Lee

Worst is not over for Japanese yen, analyst says

The Japanese yen’s depreciation is one of the more “rigorous” and “easiest” moves to explain because it is “based on real fundamentals,” director of Monex Group Jesper Koll told CNBC, adding it could plummet even further in coming months.

It is the most “textbook-driven currency move I’ve seen in 30 years,” he said.

Koll pointed towards the interest rate differential between the U.S. and Japan as one of the “powerful forces” that will move the yen, adding the chance of the Bank of Japan raising rates is “close to nil.”

Read the full story here.

—Charmaine Jacob

CNBC Pro: Uranium is ‘on a tear’ right now. Here are two ETFs to play it

One niche area of the commodity market — uranium — has been a bright spot over the past month, with its performance outpacing even that of the broader energy sector.

Two ETFs have surged in recent weeks, as the West scrambles to reduce its reliance on Russian energy.

Pro subscribers can read more here.

— Weizhen Tan

Bilibili plunges 16% at open after reporting second-quarter loss

Hong Kong-listed shares of Chinese video and gaming company Bilibili plunged more than 16% at the open after reporting a miss on its second-quarter earnings overnight.

The company reported a net loss of more than $300 million almost double the amount of loss reported for the same period a year ago.

Citi Research’s vice president of China internet and media Brian Gong, however, was optimistic and said regulatory concerns over the country’s gaming industry are easing.

Pointing to the government’s resuming of gaming licenses, Gong said “although their number is less than expected, it shows the environment is improving,” he said on CNBC’s “Squawk Box Asia,” adding that “the worst is behind us.”

—Jihye Lee

CNBC Pro: Citi just upgraded eight Chinese stocks

China’s “economic recovery looks to be slower than market expectations,” Citi’s stock analysts said in a Sept. 2 report.

They downgraded 12 China stocks — but upgraded eight. Here are three stocks from their updated list of top Hong Kong and mainland-traded Chinese stocks to buy.

Pro subscribers can read more here.

Evelyn Cheng

U.S. stock futures open little changed

U.S. stock futures opened little changed following a choppy session in the major averages as Wall Street considered the pace of future interest rate hikes.

Dow Jones Industrial Average futures rose by 23 points, or 0.07%. S&P 500 and Nasdaq 100 futures climbed 0.08% and 0.13%, respectively.

— Sarah Min

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Hong Kong’s Jumbo Floating Restaurant sinks at sea

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One of Hong Kong’s most famous landmarks — a large floating restaurant known for its lavish banquet halls and neon lights — capsized in the South China Sea, its parent company said Monday.

The Jumbo Floating Restaurant — also known as Jumbo Kingdom — was towed from the city last week after closing down during the pandemic. The vessel hit adverse weather Sunday and capsized near the Paracel Islands, Aberdeen Restaurant Enterprises said in a statement, adding that no crew members were hurt.

The sprawling 260-foot-long boat spent nearly half a century in Hong Kong’s waters, playing host to “numerous international dignitaries and celebrities,” including Queen Elizabeth II and Tom Cruise, according to the Jumbo Kingdom website.

Aberdeen Restaurant Enterprises previously said it could not afford the cost of maintenance — with millions of dollars spent on inspections and repairs to meet licensing requirements. Hong Kong’s government, under Chief Executive Carrie Lam, rejected calls to offer temporary financial relief.

Coronavirus binds Hong Kong even closer to Beijing as the mainland takes lead on pandemic response

“We have clearly indicated that the government has no plans to invest money in the operation of the restaurant as we are not good at running such premises,” Lam said.

Even before the pandemic, the restaurant, which served Cantonese fare, was accumulating debt. But Hong Kong’s early move to ban tourists hit Jumbo Kingdom and other attractions hard.

Earlier this month, before it was towed, the restaurant’s 130-foot kitchen flotilla snapped off the back of the boat and sunk in Hong Kong’s Aberdeen Typhoon Shelter.

It was unclear exactly where Aberdeen Restaurant Enterprises planned to take the restaurant before it sank. A spokesperson for the company told South China Morning Post that the vessel was being towed somewhere in Southeast Asia.

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Hong Kong’s Hang Seng leads gains in Asia; Alibaba shares soar

SINGAPORE — Shares in Asia-Pacific rose in Friday morning trade, with investors monitoring shares of Alibaba in Hong Kong after the Chinese tech giant posted better-than-expected fourth-quarter earnings on Thursday.

In Friday morning trade, shares of Alibaba in Hong Kong surged 12.08% after it reported Thursday fourth-quarter earnings of 7.95 yuan ($1.18) per share, excluding items, on revenues of 204.05 billion yuan ($30.28 billion).

That was higher than analyst expectations for earnings of 7.31 yuan a share on CNY199.25 billion in revenue, according to StreetAccount.

Other Chinese tech stocks in the city also saw big gains, with Tencent rising 3.71% while Netease surged 5.39%. The broader Hang Seng index in Hong Kong climbed 2.78%.

Mainland Chinese stocks also traded higher, with the Shanghai Composite up about 0.5% while the Shenzhen Component advanced 0.845%.

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The Nikkei 225 in Japan gained 0.88% as shares of conglomerate SoftBank Group surged 4.47%. The Topix index advanced 0.62%. South Korea’s Kospi also jumped 1.15%.

In Australia, the S&P/ASX 200 climbed 1.07%.

MSCI’s broadest index of Asia-Pacific shares outside Japan traded 1.57% higher.

Overnight on Wall Street, the S&P 500 jumped 1.99% to 4,057.84. The Dow Jones Industrial Average surged 516.91 points, or 1.61%, to 32,637.19. The tech-heavy Nasdaq Composite outperformed as it rose 2.68% to 11,740.65.

Currencies and oil

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 101.691 — off levels above 102.2 seen earlier in the week.

The Japanese yen traded at 127.01 per dollar, still stronger than levels above 127.8 seen against the greenback earlier this week. The Australian dollar changed hands at $0.7103, holding above the $0.705 level that it momentarily fell below earlier in the week.

Oil prices were higher in the morning of Asia trading hours, with international benchmark Brent crude futures rising around 0.2% to $117.61 per barrel. U.S. crude futures hovered above the flatline, trading at $114.14 per barrel.

— CNBC’s Samantha Subin contributed to this report.

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Pelosi says Hong Kong’s arrest of cardinal ‘one of the clearest signs yet of Beijing’s worsening crackdown’

House Speaker Nancy Pelosi (D-Calif.) slammed the arrest of a Catholic cardinal in Hong Kong, calling it “one of the clearest signs yet of Beijing’s worsening crackdown” in an op-ed published Friday in The Washington Post.

Cardinal Joseph Zen and four other people were arrested earlier this week by national security police in Hong Kong but were later released on bail amid continuing arrest operations, the Post reported.

The four had been involved in the 612 Humanitarian Relief Fund, now disbanded, which paid for the medical and legal fees of those were detained during pro-democracy protests in 2019 as well as offering other financial assistance, according to the newspaper.

The five people arrested were trustees of the fund, and their work on the fund was cited in their arrest. They were accused of foreign collusion and detained under Hong Kong’s national security law.

“Zen’s arrest is one of the clearest signs yet of Beijing’s worsening crackdown as Hong Kong fights for its freedoms — and of Beijing’s growing desperation and fear that it is losing this fight. Indeed, this act of persecution is a sign of weakness, not a show of strength,” Pelosi wrote.

Pelosi urged others to condemn the arrests, which she said were “an affront to religious freedom, political freedoms and human rights.”

“As I have said before, if we do not speak out for human rights in China because of commercial interests, we lose all moral authority to speak out on human rights anywhere in the world,” she added.

Imposed by Beijing on Hong Kong in 2020, the national security law gives more control to China over punishing activists and demonstrators and offers less judicial authority to Hong Kong on cases. 

The U.S. has been among several countries to criticize the law.

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Pelosi says Hong Kong’s arrest of cardinal ‘one of the clearest signs yet of Beijing’s worsening crackdown’

House Speaker Nancy Pelosi (D-Calif.) slammed the arrest of a Catholic cardinal in Hong Kong, calling it “one of the clearest signs yet of Beijing’s worsening crackdown” in an op-ed published Friday in The Washington Post.

Cardinal Joseph Zen and four other people were arrested earlier this week by national security police in Hong Kong but were later released on bail amid continuing arrest operations, the Post reported.

The four had been involved in the 612 Humanitarian Relief Fund, now disbanded, which paid for the medical and legal fees of those were detained during pro-democracy protests in 2019 as well as offering other financial assistance, according to the newspaper.

The five people arrested were trustees of the fund, and their work on the fund was cited in their arrest. They were accused of foreign collusion and detained under Hong Kong’s national security law.

“Zen’s arrest is one of the clearest signs yet of Beijing’s worsening crackdown as Hong Kong fights for its freedoms — and of Beijing’s growing desperation and fear that it is losing this fight. Indeed, this act of persecution is a sign of weakness, not a show of strength,” Pelosi wrote.

Pelosi urged others to condemn the arrests, which she said were “an affront to religious freedom, political freedoms and human rights.”

“As I have said before, if we do not speak out for human rights in China because of commercial interests, we lose all moral authority to speak out on human rights anywhere in the world,” she added.

Imposed by Beijing on Hong Kong in 2020, the national security law gives more control to China over punishing activists and demonstrators and offers less judicial authority to Hong Kong on cases. 

The U.S. has been among several countries to criticize the law.

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John Lee, Hong Kong’s next leader, is a hardline former police officer who took on the city’s protesters

Last week, the man who led the crackdown stepped onto a stage to lay out his vision for Hong Kong — this time not as the city’s security chief, but its next leader.

In what the government has billed as an “open, just and honest” election, a largely government-appointed, pro-Beijing committee of 1,461 people will appoint the next leader for the city’s 7.5 million residents on Sunday. Lee is the only person in the running, in contrast to previous years that saw run-offs between multiple candidates.
For many, Lee’s ascension speaks volumes about the direction Hong Kong — once world-renowned for its robust press, flourishing civil society and democratic aspirations — is headed. Lee has already indicated that he will look to introduce further national security legislation and possibly a law against fake news.
To Nathan Law, a human rights activist and former local lawmaker now in self-exile in Britain, it seems “very obvious” why Lee is tipped for the role.

“It really signals (authorities) are intensifying that heavy-handed approach to Hong Kong, and putting the so-called national security as their policy for governing the city,” Law said.

A rise years in the making

The forces behind Lee’s rise to the city’s top job can be traced back nearly half a century.

Lee joined the Hong Kong police force as a 19-year-old recruit in 1977 as the city — then a British colony — underwent an economic transformation into a modern financial center.

He rose through the ranks and was promoted to chief superintendent in 1997 — the same year Britain handed the city to China in a pomp-filled ceremony watched around the world.

Since that watershed year, activists like Law say they have watched Hong Kong’s freedoms be squeezed ever tighter. All the while, Lee continued gaining prominence, becoming deputy commissioner, the second-highest position in the police force, by 2010.

Just two years after that, he joined the city’s Security Bureau as under-secretary. To some, the appointment of a high-ranking police officer to a key government office was a statement of intent.

“We were already really nervous about that, because that really signaled a change in Hong Kong’s policy, changing it in a seemingly more suppressive way,” Law said.

By 2016, when Law was elected into the legislature, Lee “was already notoriously difficult to deal with” and seemed hostile to any journalists or opposition lawmakers who raised questions or challenges, Law said.

Lee’s supporters have disputed this characterization, maintaining his time in the police force helped prepare him for a public office.

One pro-Beijing lawmaker, Ma Fung-kwok, said Lee had demonstrated “leadership skills” in his handling of the protests and the pandemic, according to public broadcaster RTHK. Another, Jeffrey Lam, said Lee had “solved many cases” in the police force and can cooperate with “other sectors in the society.”

At a brief political rally on Friday, Lee, whose slogan is “We and us — a new chapter together,” stressed the importance of community and promised to “make Hong Kong a place of hope” once appointed.

CNN has reached out to Lee’s campaign team for comment.

The 2019 protests

Lee’s rise continued when he was appointed security chief in 2017 — the “beginning of a changing trend,” said Joseph Cheng, a retired Hong Kong academic and pro-democracy activist now based in New Zealand.

“Beijing seems to be emphasizing loyalty more, or the capability of implementing a hard line — therefore, senior officials from the disciplinary forces appear to occupy a more advantageous position,” Cheng said.

It was under Lee’s tenure that the Security Bureau introduced the controversial extradition bill that led to the protests in 2019.

Critics worried Beijing could use the bill to prosecute Hong Kong residents for political reasons under China’s opaque legal system.

With the Hong Kong government standing firm on the bill despite public objections, the protests quickly expanded into a broader pro-democracy, anti-government movement. Fears were underpinned by widespread anxiety about Beijing’s growing influence and the perceived erosion of Hong Kong’s cherished semi-autonomous status, which allowed it the freedoms of press, speech and assembly that had long been central to its international appeal.

Withdrawing the bill was just one of five popular demands by protesters; others included universal suffrage and accountability from police, who faced accusations of brutality they have denied.

At the height of the crisis, protesters and police clashed nearly every week, with demonstrators lobbing bricks and Molotov cocktails and officers responding with tear gas, rubber bullets, and at times live ammunition. The violence polarized the city, cementing the breakdown in trust between the public and the authorities.

Through it all, Lee praised his officers as “courageous” and condemned protesters as “radicals” who were sowing “terror.” When hundreds of protesters — many high school students — occupied a university for more than a week, police laid siege to the campus with Lee declaring: “We will arrest them all.”

Lee has repeatedly defended the force’s actions, insisting critics need to “think about the (preceding events), otherwise it will not be fair.”

“I am proud of the Hong Kong police force. They remain Asia’s finest … Compared to what they do with law enforcement agencies overseas, I think they have exercised restraint. They have minimized the harm and injuries to everybody,” he said in September 2019.

Long arm of the national security law

Lee gained local prominence for his role in combating the protests — but his implementation of the national security law cemented his reputation as a hardline enforcer and Beijing loyalist.

The security law was promulgated by Beijing in June 2020, during a lull in the protests brought by the Covid-19 pandemic. Described by the Hong Kong government at the time as “a crucial step to ending chaos,” the law criminalizes secession, subversion, terrorism and collusion with foreign forces — and allows for maximum sentences of life imprisonment.

In an instant, Hong Kong’s social and political landscape was transformed, and within months, many of the city’s leading pro-democracy figures were either in jail or exile.
Under the security law, Lee oversaw the mass arrest of opposition figures in 2021, accusing them of trying to “paralyze the Hong Kong government” by organizing a pro-democracy primary election.
He ordered a police raid on Hong Kong’s biggest pro-democracy newspaper, Apple Daily, which was subsequently forced to shut after its assets were frozen and several employees arrested under the security law.

A week after the raid, Lee was promoted to chief secretary — the second-highest position in government — and the first time a security official has taken the role.

Experts say Lee’s suppression of the protests and support for national security is precisely why he now finds himself the city’s next leader.

“(This is) the reward for loyalty,” said Cheng, the activist and former academic.

Supporters of the security law insist it has helped establish stability in the wake of the violence and political unrest of 2019. “People’s lives and property are protected, and they can once again enjoy their legitimate rights and freedoms,” a government spokesperson said in April in response to a question on the law.

But Lee’s association with the law has been met with increasing scrutiny abroad. He was among nearly a dozen people sanctioned by the US in 2020 for undermining the city’s autonomy and democratic processes — which Lee has scoffed at, recently calling the sanctions “unreasonable” and “acts of bullying.”

He has also continued to defend the law, as well as recent electoral changes that placed him at the head of a vetting committee to screen all candidates, ensuring only “patriots” would be allowed to run for office.

The national security law “has restored peace,” Lee told the United Nations Human Rights Council in March, decrying the 2019 protests as “evil” and lauding “the improved electoral system.”

“No country has a monopoly on the model of democracy,” he added.

What this means for Hong Kong

Lee has already made clear the kind of government he will shape: one with increasingly close ties to mainland China.

At the unveiling of his policy manifesto on April 29, Lee emphasized the need to integrate Hong Kong with other economically important Chinese cities. There was no English translation provided, despite English being one of Hong Kong’s two official languages — in striking contrast to most government events to date.

He also vowed to bolster security legislation and introduce “national identity” education. Both proposals have long been controversial, with previous attempts to introduce legislation foiled by protests and pushback — much to Beijing’s frustration.

Lee has also previously voiced support for a “fake news” law — prompting fears the reins will only tighten on what remains of the city’s media and civil groups. Last week, the city’s press freedom ranking plunged to a record low of 148 among 180 locations, compared to its ranking of 73rd in 2019.

Despite this, the outgoing Chief Executive Lam continues to claim that Hong Kong’s media sphere is “as vibrant as ever,” though she warned last week that “media organizations are not above the law … including the national security law.”

Lee will also have to navigate the Covid-19 pandemic, with patience fraying among many in Hong Kong after more than two years of stringent restrictions in accordance with China’s unbending zero-Covid policy.

At his policy manifesto event, Lee asserted that “at some point (the virus) will be under control,” and that he would design measures to allow businesses to operate.

Cheng, the pro-democracy activist who moved to New Zealand, sees the future as being “the continuation of the hard line of the past two years.”

“There is no toleration of political opposition … there will be very little tolerance of an independent media, and very little tolerance for the operation of civil society organizations,” Cheng said.

When asked by CNN about accusations of diminished political freedoms, a government spokesperson responded that the rights of Hong Kong residents are “protected in accordance with the law” — but that “many freedoms and rights are not absolute, and can be restricted for reasons including protection of national security and public safety.”

Disillusionment and emigration

Among former activists and pro-democracy supporters, there’s a sense of despair as Lee prepares to take office.

The circumstances of his selection, with Lee as the sole contender showered with praise by pro-Beijing lawmakers, cut particularly deep for many of those who once marched to demand greater democratic freedoms.

“It’s definitely not, by any means or any parameters, a democratic (process),” said Law, the former lawmaker. “It’s really just an appointment. I don’t really call it an election.”

Lee has dodged questions about whether he was handpicked by the central Chinese government, saying in April he welcomed anybody else who wished to run.

He has since received endorsements from leading establishment figures, including two former police commissioners and two former security chiefs, RTHK reported.

After the turmoil of the past three years, even a new administration is unlikely to bridge the broken relationship between the government and its people, said John Burns, emeritus professor at the University of Hong Kong.

“There is a huge percentage of the population that is alienated and angry,” he said, pointing to mass emigration as “evidence of alienation … of a sick society.”

Locals, expatriates and foreign companies are leaving the city in droves. More than 100,000 Hong Kongers applied for a new visa offering a path to citizenship in Britain last year; and in February and March alone this year, more than 180,000 people left the city while only about 39,000 entered, according to immigration data.

While Hong Kong’s harsh Covid restrictions are helping drive this exodus, Lee’s critics say that so too is the crackdown on civil liberties he enforced.

Asked about this on April 29, Lee brushed it off. He claimed Hong Kong had always seen high levels of mobility, and that its proximity to the mainland market would continue to attract businesses.

“We are an inclusive city,” he told reporters. “Together, we start a new chapter for Hong Kong.”

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Hong Kong’s Covid Crackdown Empties Stores and Sets Off Exodus

HONG KONG — As the government in Hong Kong struggles to contain the city’s worst Covid outbreak ever, some residents have panicked. They have emptied supermarket shelves of vegetables and meat. They have raided drugstores for pain and fever medication. Those who could afford it have jumped on flights out of the city.

Tens of thousands of new Omicron cases are being reported each day, and deaths have surged. The anxiety gripping Hong Kong is not just about the explosion of infections, but also about what the government will do next. Mixed messages from officials have left residents wondering: Will there be a lockdown? Will we be sent into isolation facilities? Will our children be taken from us if they test positive?

Under pressure from Beijing to eliminate infections, Hong Kong officials have vowed to test all 7.4 million residents. Such an operation would require restricting people’s movements, but the government has been ambiguous about whether it would impose a lockdown, and if so, when. Just the possibility of one, however, set off the run on groceries and other supplies.

“I’ve been here most of my life, through everything, and it’s never come to something like the panic I’ve seen by the public,” said Allan Zeman, 72, a property developer and an adviser to Hong Kong’s leader, Carrie Lam.

The city’s fatality rate from the virus is currently among the world’s highest, at three per 100,000 residents, largely because many older Hong Kongers are unvaccinated. (Since the pandemic started, though, Covid has killed Americans at far higher rates than people in other wealthy nations, as well as in Hong Kong.)

Hong Kong is one of the last places in the world that is still trying to eradicate the coronavirus, rather than live with it. It has doubled down on a strategy of isolating every case found, regardless of severity and symptoms, and imposing quarantine orders on people deemed close contacts, despite a shortage of facilities and workers. Rising infections, as well as the government’s measures, have already overwhelmed hospitals, morgues, ambulance services and quarantine facilities, and forced understaffed post offices, banks and even prisons to cut back on services.

Residents have been particularly alarmed by the government’s approach to children who test positive for the coronavirus. The city erupted in an outcry two weeks ago after health workers took an infected 11-month-old girl from her parents and isolated her in a hospital. One parent is typically allowed to accompany a child, but the hospitals are too crowded, with hundreds of children stuck in Covid isolation wards. Officials later said they would organize video chats to allow hospitalized children to stay in touch with their family members.

Kaylah Tong, a 35-year-old pastor, said that she sent her 2-year-old son to a hospital last month after he had tested positive, with a high fever and convulsions. He stayed alone in an isolation ward for two days.

A doctor had initially warned her that her son could be kept in isolation for weeks because of the hospital’s Covid-19 protocols, which include requiring patients to test negative before being discharged. That made Ms. Tong worry about her son’s mental health.

“How could children be kept there so long without the parents at their side, just because of quarantine measures? I cannot accept that,” she said.

By the third day, though, the hospital let Ms. Tong take her son home to recover; his condition had improved and his hospital bed was needed. The government later said it would temporarily loosen its policy so that only children with severe coronavirus symptoms would need to hospitalized.

Foreign governments have also responded to Hong Kong’s pandemic measures with concern. Citing the risk of familial separation, the United States Consulate last week warned Americans not to travel to Hong Kong. The French consul general acknowledged that the latest measures would “profoundly affect everyone’s life, with a price to pay that has been steadily increasing for two years, especially for families with children.”

Consular officials have worked to help expatriates find travel arrangements to leave Hong Kong, which has banned flights from nine countries, including the United States, Canada, Britain and Australia. The Swiss Consulate arranged one flight for citizens. The Irish Consulate said it had “never experienced this level of demand for consular service for those wishing to leave.”

Hong Kong, a place once known as “Asia’s World City,” now has some of the strictest travel restrictions, isolating it from the rest of the world. The new uncertainty has driven the largest exodus of residents since the early days of the pandemic in 2020, with more than 70,000 net departures last month, according to data from the Immigration Department.

Weeks earlier, Cordula Kotanko, a German management consultant, and her husband had been thinking about leaving Hong Kong because their three daughters had been struggling with remote learning during much of the pandemic. They were also worried about the prospect of being caught in a citywide lockdown.

Then, late last month, the government said it would bring forward the summer holiday to start in March and April, around four months earlier than usual. Officials said they planned to use schools to conduct mass testing and isolation of the sick. That prompted Ms. Kotanko and her husband to pack their family up and fly to Singapore.

“At that point, we just wanted to get out of Hong Kong in order to act so that we could make decisions and not have decisions made for us,” Ms. Kotanko said. “What we experienced in the past two years is that children always come last in Hong Kong and the kids have had to shoulder a lot of the pandemic.”

The outbreak and the government’s policies have been especially hard on the city’s working class. Many service workers have lost their jobs as thousands of businesses went bankrupt. Families who live in tiny apartments have been forced to choose between staying home and infecting relatives or sleeping elsewhere.

The state of grocery stores and pharmacies may be the starkest illustration of how this international hub is buckling under this Omicron surge.

Mannings, one of Hong Kong’s best-known drugstore chains, has had to temporarily close dozens of its stores. Various pain medications and Covid testing kits, according to its website, are out of stock. Some other drugstores in the city are out of sanitary napkins and tampons.

ParknShop, a supermarket chain, has limited individual purchases of canned food, toilet paper and medicine. At Wellcome, another supermarket chain, employees put little notes on shelves asking patrons not to hoard vegetables, meat and eggs.

Last Tuesday, Betty Xiao, a graduate student, rushed to the biggest supermarket in Tai Po, a neighborhood in northern Hong Kong where she lives, after her roommate told her that the government might announce a lockdown. Ms. Xiao wanted to stock up on food in case online deliveries of groceries were disrupted.

As she neared the store, she could see a line of customers that snaked around the street. Inside, she said, she and other people were snatching up items straight from cardboard boxes that employees had not even unloaded onto the shelves. Ms. Xiao said she was able to grab the last bag of bread.

“It was a pretty tense atmosphere,” Ms. Xiao said. “I had to be fast.”

Joy Dong contributed reporting.

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Hong Kong’s COVID misery deepens with new social restrictions, vegetable shortage

  • Vegetable vendors say no produce from China able to come in
  • Lam says city to stick with current coronavirus strategy
  • No solution offered for shortages
  • Public gatherings limited to 2 people from Thursday, churches and beauty salons to close

HONG KONG, Feb 8 (Reuters) – Hong Kong announced stringent new coronavirus restrictions and record new infections on Tuesday, while a shortage of vegetables added to the misery as truck drivers who tested positive for COVID-19 were unable to bring them from mainland China.

The Asian financial hub reported a record 625 coronavirus cases on Tuesday, with cases likely to continue rising rapidly, authorities said. There were 2,600 infections over the past two weeks compared with just two in December.

Responding to the worrying trend, Hong Kong’s leader Carrie lam said public gatherings would be limited to two people from four currently, while churches and hair salons would close from Thursday, joining a slew of venues already closed.

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Lam also announced a ban on private gatherings of more than two families, though it was unclear how authorities would enforce it.

“The time has come for Hong Kong to take some tough measures,” Lam told a news briefing.

“We are adopting stringent measures to protect Hong Kong.”

Hong Kong’s supply of vegetables on Tuesday was around one-third of Monday’s after several cross border truck drivers, who bring in produce from mainland China, tested positive, the government said. read more

Shelves stocking vegetables were bare across supermarkets in the city while crowds surged into fresh markets to snap up the limited produce available. Other food remained available.

At a market in the city’s downtown Wan Chai district, a staff member from Qiandama vegetable store, shouted to crowds not to enter.

“No more veggies inside…It’s like the battlefield,” she said as people tried to charge in.

Some vegetable and fruit stalls selling mainland Chinese produce were shuttered while others were selling produce at double their usual prices.

For now, Lam said, the best option was to adhere to the “dynamic zero” strategy employed by mainland China to suppress all coronavirus outbreaks as soon as possible.

The official Chinese Communist Party newspaper, the People’s Daily, had encouraged Hong Kong to follow China’s approach to containing the virus in an editorial on Monday.

“When vaccination rates increase, when Omicron disappears and when other things happen, we will revisit our strategy,” Lam said.

ISOLATED

Hong Kong’s coronavirus policies have turned the Asian travel and business hub into one of the world’s most isolated major cities.

The economic and psychological toll from the hardline approach are rapidly rising, with measures becoming more draconian than those first implemented at the start of the pandemic in 2020.

Flights are down by around 90%, schools, playgrounds, gyms as well as most other venues are shut. Restaurants close at 6 p.m. (1000 GMT), while most people, including the majority of civil servants, are working from home.

All the measures are being extended to Feb. 24, when the city’s vaccine pass will also take effect. People will need to be vaccinated to enter shopping malls, supermarkets and other venues, Lam said.

Government quarantine facilities are also nearing their maximum as authorities struggle to keep up with their rigid contact tracing scheme.

Many health experts have said the current strategy of shutting itself off as the rest of the world shifts to living with coronavirus, is unsustainable. read more

Doctors say mental health is suffering, particularly in families where people are earning less, or children cannot go to school due to the restrictions.

Hunting the shops for vegetables, one 60 year old man, who gave his surname as Ngai, said the authorities should help supply more food as prices had surged.

“The government doesn’t do anything, so the vegetable sellers are upping the price,” he said. “It’s really hard to be a Hong Konger.”

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Reporting by Joyce Zhou, Marius Zaharia, Donny Kwok, Anne Marie Roantree, Aleksander Solum; Writing by Farah Master; Editing by Simon Cameron-Moore

Our Standards: The Thomson Reuters Trust Principles.

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