'No-COVID' policy drags on Hong Kong economy as cases surge

Once bustling Hong Kong is languishing amid a strict zero-COVID strategy that has closed bank branches and movie theaters

HONG KONG -- Hong Kong’s Fung Shing Restaurant was bustling this week as customers came for one last taste of the traditional Cantonese dim sum that has made it famous.

With COVID restrictions cutting too deeply into its bottom line, the restaurant will shut its doors for good on Sunday, another economic victim of the pandemic.

Many fear the worst is yet to come, however, with Hong Kong experiencing its most severe outbreak yet, and fret the authorities' determination to stick to mainland China’s “zero-COVID” strategy may prevent it from recovering as a financial and travel hub.

“Even though maybe zero-COVID can be reached, there is still uncertainty on how long it can be maintained and what the cost is of maintaining it,” said Natixis senior economist Gary Ng.