The $520mn superyacht of Russian billionaire Alexei Mordashov is at present moored safely in Hong Kong. The city decided not to seize the assets of the oligarch, who is under US, EU and UK sanctions. Some Russian companies also see Hong Kong as a haven. That is symptomatic of Hong Kong’s decline as a financial centre, rather than a solution to it.
Gold miner Polymetal is considering switching its domicile from Jersey to Hong Kong. Shares in aluminium group Rusal already trade there. Other Russian groups have been exploring the possibility of Hong Kong financings. These would be easier to pull off if Hong Kong’s market had not just hit an 11-year low, falling below the psychological barrier of 17,000 points.
That reflected Beijing’s vow to stick to its zero-Covid policy and the imposition of fresh US tech sanctions on China.