The survey shows that businesses in the Asian city see its "zero COVID" policies as unduly restrictive and damaging to their commercial activity. Some are even thinking of moving their HQs to rival centres.

A survey of business figures in Hong Kong shows that they are worried that the Asian city-state’s harsh anti-COVID regime is hurting its commercial prospects and may encourage an exodus to rival hubs.

The American Chamber of Commerce in Hong Kong, which is conducting its 2022 Business Sentiment Survey Report this week, has polled 262 member firms. It found that, despite concerns about restrictions for handling the pandemic, firms are broadly optimistic about Hong Kong’s business outlook and plan to expand investments for the next 24 months.

Hong Kong’s international travel restrictions to contain COVID-19 weigh heavily on both the company and personal sentiment, the survey found. The study was issued shortly after media reports said that bank executives at Goldman Sachs, Bank of America and UBS were struggling to return to Hong Kong after the jurisdiction banned flights from eight countries to deal with the pandemic.

Six out of 10 businesses based in Hong Kong have their global or regional headquarters there; consequently, hefty quarantine rules and travel restrictions are continuing to cause significant disruptions in offices outside Hong Kong, the report said. More than 30 per cent of respondents have had to delay making new investments in Hong Kong and 30 per cent struggle to fill senior executive roles.

Travel restrictions also weigh heavily on sentiment about living in Hong Kong, from both a company and personal perspective. More than 40 per cent are more likely to leave the city for personal reasons, and over 25 per cent of companies say they are more likely to leave Hong Kong.

Only 5 per cent of global/regional headquarters have definite plans to move their HQs from Hong Kong, though half are unsure about what to do. Hong Kong is seen by the majority to be competitive as a global hub. However, Singapore (80 per cent) is considered to be the biggest threat to the city given its strategic location and pro-business approach.

Some 86 per cent of companies said that chilly US-China relations have made them fret about their outlook. 

Industry sources have said that once the “bonus season” is completed by early spring this year, a number of Western bankers working in Hong Kong are likely to leave. Besides the anti-COVID-19 restrictions, another factor is that Hong Kong has become a less welcoming place for non-Westerners after Beijing imposed a national security law on the former British colony in 2020.