Despite prolonged, pandemic-related downward pressure on the economy, Hong Kong retained its third-place ranking in the latest study of the world’s leading financial centres. But that is up to the end of 2021. This ranking would have come under a lot more pressure if the study had been up to date, reflecting the draconian anti-Covid measures introduced this year. This has prompted representatives of the financial and business sectors to warn that if the city is to hold its position, the government must spell out and stick to a clear road map for restoring normal life. Thankfully, officials have announced plans for some relaxation of restrictions. And yesterday, Chief Executive Carrie Lam Cheng Yuet-ngor revealed she had held a virtual meeting with diplomats and business representatives where she conceded that restrictions had caused an exodus of talent and promised to defend the city’s international status. Hong Kong Covid measures contributed to departure of business talent: Carrie Lam That said, Hong Kong’s standing has been enhanced by the resilience of its markets during the first two years of the pandemic. The city ranked third behind New York and London in the semi-annual Global Financial Centres Index, produced by the China Development Institute in Shenzhen and the London think tank Z/Yen. A government spokesman said the city’s markets had continued to function “in an orderly manner”. However, Tom Chan Pak-lam, chairman of the Institute of Securities Dealers, said the appetite for initial public offerings and investment in the city’s financial markets reflected some international capital pulling back because of the fifth wave of the virus. The ranking is based on a survey of competitiveness among 11,993 financial professionals. The pandemic may be a one-off challenge to market stability. Hong Kong may have come through it unscathed, and the future may be lined with the prospect of more than 200 mainland listings this year. But in an uncertain world, dominated by China-United States global rivalry and now polarised by war in Ukraine, further geopolitical challenges to stability cannot be ruled out. Hong Kong must learn from the experience to be well prepared to meet them with proportionate measures if it is to retain confidence and attract talent.