Hong Kong is experiencing its 5th Wave of COVID:
Investor confidence in Hong Kong is dwindling as the government loses its grip on an escalating omicron outbreak.
Bearish bets against the city’s shares have climbed to records and the benchmark Hang Seng Index is near a two-year low. Residents are converting the local currency into China’s yuan at the fastest pace in more than a decade, while the Hong Kong dollar is moving toward the weak end of its trading band against the greenback. Even the city’s typically resilient property market is showing cracks, with a gauge of home prices falling to an 11-month low.
After enduring some of the world’s strictest quarantine regulations under the city’s Covid-Zero policy for almost two years, Hong Kong residents are now facing one of the deadliest outbreaks. Over 225,000 infections have been recorded in the current wave, though Hong Kong University researchers estimate that the true count is about 1.7 million people – almost a quarter of the financial hub’s population.