Fund managers in Hong Kong have welcomed the easing of travel restrictions with mainland China put in place to curb the rise of Covid 19.
The shared border has been closed for almost three years but was finally reopened in recent days, with an initial quota of 60,000 per day in each direction.
Despite the limits on numbers, local managers are confident of a boost in investor sentiment in both China and Hong Kong.
“From an investment standpoint, we are bullish on the consumption/retail sector in the Hong Kong market, both in terms of discretionary and staples, as we expect rising visitors traffic will bring strong growth in revenues,” said David Townsend, managing director of EMEA business at Value Partners Group.
“While some of these stocks have already rallied on the news, there is likely to be further upside as consensus has yet to reflect this positive development.”
“With the opening up of China, business activities will become robust again, leading to stronger domestic consumption in the coming months,” said Ronald Chan, founder and chief investment officer at Chartwell Capital.
It may also help Hong Kong adress a recruitment problem in its investment industry. According to a 2022 survey commissioned by the Hong Kong Investment Funds Association, almost half (48%) of the surveyed firms said it was "extremely difficult" to fill vacancies with Covid-related travel restrictions in place.
©2023 funds global asia 
At times like these, HSBC Asset Management easily pivots towards emerging markets.
The spotlight on growth markets and the need to be nimble and dynamic is ever-sharper, given the difficulty in predicting monetary policy in the world’s major nations.
A comprehensive, cost-effective, and transparent currency overlay hedging solution is crucial to mitigate FX exposure risks in the complex landscapes of Japan and China's FX markets, explains Hans Jacob Feder, PhD, global head of FX services at MUFG Investor Services.
Ross Dilkes, fixed income portfolio manager at Wellington Management, examines the opportunities and risks for bond investors presented by the region’s decarbonisation agenda.
Shareholders in Japan no longer accept below-par corporate governance standards. Changes are taking place, but there are still areas for improvement, says Tetsuro Takase at SuMi Trust.
Robert St Clair, head of investment strategy at Fullerton Fund Management, explores the reasons investors should be paying attention to the rising demand for healthcare in China.
China's internet market presents one of the most compelling long-term growth potentials for investors today, given the catalysts supporting the sector from both macro and fundamental perspectives, explains Dr Xiaolin Chen, head of international, KraneShares.
