As such, we were more than a little pleased to see that the authorities in the Hong Kong SAR have indeed announced some new reductions to the restrictions to travel, in particular in lifting the 0+3 limitations to visit bars and restaurants that, among other things, were limiting the ability of international investors to include Hong Kong SAR as part of a broader Asia business trip (admitted self interest here!).
While some limited restrictions still remain, the direction of travel is clear and likely that a lot of focus will now be for full opening up to China for Chinese New Year (something Hong Kong SAR CEO John Lee has declared as something “I will do everything I can to facilitate”).
Of course, the HSI has also been rallying since the end of October, helped in particular by the rebound to the China Internet stocks that were linked to the ADR capitulation – many of the stocks had listed on the HSI and thus had acted as a drag on the performance of the index as the ADRs were dumped by US investors (see Is US tax driving Chinese stocks?).
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