Shanghai’s Lockdown Leaves Finance Pros on the Road to Hong Kong
Picture this: a city that once buzzed with traders, bankers and investors suddenly gets locked down for a month, and everyone is stuck at home. The bustling financial hub of one of the world’s fastest‑growing economies feels the crunch – not only in the desks they work at but also in their everyday lives.
What the lockdown really means for the money‑makers
- Business deals hit the pause button: Many transactions are hanging in limbo because of logistical bottlenecks.
- Daily hardships: Some professionals struggled to get groceries and basic supplies.
- No bargaining power: The rule‑making is outside their control.
Melvyn Xu says “damn it, how did it get so bad?”
Melvyn Xu, a private‑equity investor who moved to Shanghai in 2020, spent a few months in the city before the lockdown hit. “It’s shocking,” he says. “I never expected it to get this out of hand.”
He’s hoping the border will open for a smoother journey between Mainland China and Hong Kong. Parents worry about children, too – while Xu plans to keep his ties to Shanghai limited to work.
Why millions might return to Hong Kong
With Shanghai’s appeal as a regional financial center weakening, foreign banks, insurers and asset managers feel the pinch. Companies that had been adding staff – Goldman Sachs, JPMorgan, BlackRock – are now holding off on hiring.
“If the lockdown ends, most expats will look for new careers outside China,” says Jason Tan, a headhunter for wealth, buy‑side and fintech talent. His take: “This can happen again – maybe longer, tighter. It won’t be a selling point.”
Operational snags for bankers
A senior investment banker from a European bank mentions the difficulty in doing on‑site due‑diligence. “You have to visit factories, plants – it’s impossible to do this virtually.”
Meanwhile, a portfolio manager pointed out the city’s operational machine has been idling despite social media complaints: “It’s truly a financial and industrial juggernaut, but there’s no real adjustment to keep it running.”
The big takeaway
Shanghai’s lockdown may finally have moved some finance pros into the “back to Hong Kong” mindset. This shift symbolises a broader tremor in the Chinese financial market.
So, if you’re keeping an eye on the capital corridors, expect the cards to change – and remember, when the flu comes back, the city won’t be as easy to navigate.
