China’s National Health Commission said yesterday they will halve to seven days the country’s Covid-19 quarantine period for inbound travellers, with a further three days spent at home. It’s the biggest change in Covid prevention rules since China closed its borders in March 2020. The relaxation of the quarantine measures came after Beijing and Shanghai reported yesterday zero new locally transmitted Covid infections.


Sing Tao reported yesterday “via sources” that the incoming John Lee administration is considering relaxing Hong Kong’s entry requirements, including moving inbound quarantine to a 5+2 model, consisting of five days hotel quarantine and two days home quarantine. The newspaper said the government is also studying how to make nucleic acid testing faster and more accurate. 


Rising food and petrol prices have dragged US consumer confidence to a 15-month low. The confidence survey published by the Conference Board showed that consumers believe prices will continue to rise, even as the Federal Reserve tightens monetary policy to curb inflation. 


G7 leaders meeting in Germany, wrapped up their gathering by denouncing China over its relations with Russia, human rights, and Taiwan. The Group of Seven communique called on Beijing to urge Russia to halt the war in Ukraine and to refrain from military action against Taiwan. The statement referred to China 14 times, compared to a year ago when China was mentioned just four times in the last G7 statement. 


Global shares were unable to hold on to initial gains following the announcement that China was to ease quarantine restrictions. The FTSE All-World Index fell 1.2% Tuesday and the index is back in a bear market down 20% from last November’s record high.

 

On today’s Money Talk we’re joined by Asian Fund Management Industry Consultant, Stewart Aldcroft, Benjamin Quinlan, CEO at Quinlan & Associates and RTHK’s International Economics Correspondent, Barry Wood.