(Bloomberg) — Banks are ramping up or extending efforts to protect their staff and business continuity in Hong Kong as authorities struggle to contain a fifth wave of Covid infections in the city.
At Morgan Stanley, non-critical staff in some groups have been told to work from home starting Monday, said a person familiar with decision, who asked not to be named discussing internal matters. HSBC Holding Plc is reducing the maximum workforce at its offices to 30% from 50% while Goldman Sachs Group Inc. this week extended working in split teams to Feb. 4, according to internal memos at the banks. A spokesperson at HSBC confirmed the contents of the memo. Spokespeople at Goldman and Morgan Stanley declined to comment.
Hong Kong’s zero-Covid approach is being put to the test amid signs the virus is spreading in several chains, adding further pressure on the city as rival financial centers open up. The government has shut down bars and late evening dining, embarked on mass testing at apartment blocks and is as of Monday shutting secondary schools. Major banks in London, meanwhile, are asking their staff to get back to their desks after the U.K. this week dropped its work-from-home guidance.
“The situation in Hong Kong remains very fluid and we are closely monitoring events,” Goldman Sachs said in a memo to staff obtained by Bloomberg News. “We constantly review and plan our strategy based on detailed analysis of government policies and contact tracing procedures carried out by the Centre for Health Protection. Your health and safety are our top priority.”
HSBC recently warned its traders in Hong Kong that one of the main risks to business continuity is the city’s quarantine policy, which places close contacts in government-run facilities for as long as two weeks. The lender said in the memo on Friday that it would send care packages to employees that get stuck in Hong Kong’s Penny’s Bay quarantine center.
Banks have also reimbursing employees for Hong Kong’s strict rules for incoming travelers, which include hotel isolation for as long as 21 days.
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