LONDON/SINGAPORE – HSBC stated Hong Kong’s restrictions on travel, social interaction and tourism are hurting its economy. It made the strongst comments to date by a global bank on Hong Kong’s hard-fought efforts to fight the COVID-19 epidemic.

The lender stated that the Covid-19 restrictions being implemented in Hong Kong include travel restrictions and restrictions for public gatherings and social distancing. This could impact the economy and the ability of staff to be retained.

These comments were made as Asia-focused lender, HSBC reported more than doubled its annual profit. However, the lender stated that it expected a lower performance from its wealth management in Asia for the first quarter.

The daily infection rate in Hong Kong has risen dramatically this year. It reached a record 7533 cases Monday. This is exceeding the capacity of government testing, hospitals, and quarantine facilities.

Instead of adapting to the virus, China’s territory follows Beijing’s zero-COVID policy.

This policy has led to more expats considering leaving. Global banks, asset managers, corporate legal firms, and international banks are now facing the possibility of many employees quitting after receiving annual bonuses in the first three months.

Economists believe that the economy cannot contract again without extraordinary relief measures from Hong Kong’s 2022/23 budget. This is after it emerged last year from its longest recessions which were between 2019-2020.

HSBC comments were made after Bill Winters of Standard Chartered (OTC) said last week that city travel restrictions could affect its financial center status in the long-term.