HONG KONG: Citigroup Inc is moving half a dozen senior equities staff from Hong Kong to Singapore and other markets as the Chinese territory’s steadfast zero-Covid approach hampers operations for global banks and the quality of life for their employees.

       Lee McQueen, head of Pan Asia equity blocks, is among managing directors relocating to Singapore, following a recent move by Sue Lee, the region’s head of equity derivatives distribution, people familiar with the moves said, asking not to be identified discussing an internal matter.

       Another four to five directors, including Kevin Zolkiewicz, head of futures execution for Asia-Pacific, Rob McVie, who focuses on prime finance, as well as Abhishek Choudhary, head of equity execution advisory in the region, are in talks to transfer to Singapore, the people said.

       “The bank was being as flexible as possible to support employees who wanted to relocate due to family reasons or for client coverage,” said James Griffiths, a Hong Kong-based spokesman for Citigroup.

       He declined to comment on specific personnel moves.

       Daniel Millwood, Asia-Pacific head of prime services sales trading, is moving to London, while Allan Newsome is relocating to Australia as an electronic sales trader, the people said.

       While the number of relocations is tiny compared to the bank’s workforce in the division, it would be one of the biggest shift of senior executives by a global bank out of Hong Kong amid growing concern over the city’s status as a regional finance centre.

       Business groups have sounded warnings that the city is facing an exodus of foreign talent as its dogged approach to keeping infections at bay, which includes two weeks of quarantine for incoming travellers, is making it hard to operate.

       Hong Kong is now struggling to contain a fifth wave of the virus. Chinese President Xi Jinping this week called on city officials to take “all necessary measures” in getting the outbreak under control, an unusually direct intervention that could pave the way for a broad lockdown.

       Other financial centres such as Singapore are opting to live with virus.

       The city-state yesterday signalled it will substantially ease travel and social restrictions once the current wave of infections peaks.

       Shifting staff out of Hong Kong is a sensitive issue for global banks, who are all seeking to build up major businesses in mainland China.Hong Kong has long served as a gateway to mainland China, and some banks are still building up headcount in the city amid the difficulties.

       Citigroup has increased its staff in Hong Kong by more than 300 in the past 12 months, one-third of which was recruited or transferred from overseas to “support client led growth,” said Griffiths.

       In the equities business, the bank has added 25 people in the city during the period, he said.

       Hiring from outside of Hong Kong spanned across investment banking, sales and trading and cash management, he said.

       The bank’s relocations are in response to client demand and also partially part of plans to beef up further in equities in the region.

       Citi runs its markets business out of Singapore, where Julia Raiskin, the bank’s head of Asia Pacific equities, is based. — Bloomberg