China's reopening brings both risks and opportunities, Asian Development Bank says

China's reopening could bring opportunities arsenic good arsenic risks to its economy, Albert Park, main economist astatine the Asian Development Bank told CNBC. 

Although the lifting of Covid restrictions successful China would boost maturation prospects for the state and different economies, it could besides pb to an summation successful Covid-19 cases, helium said Wednesday. 

"The 1 country wherever determination mightiness beryllium upside hazard would beryllium China's reopening. And of course, there's some downside and upside risks for the China lawsuit due to the fact that arsenic they reopen, we cognize cases are going to person to dispersed beauteous quickly," Park said.

There could beryllium "waves successful antithetic parts of the state astatine antithetic times," Park said. "And there'll beryllium a beardown temptation by the authorities to reimpose controls oregon measurement back. That could beryllium precise disruptive for economical activity."

But that is the terms the authorities would person to wage if it wants the state to unfastened up and modulation backmost to beingness without the zero-Covid policy, helium added. 

This week, ADB downgraded its 2022 maturation forecast for China to 3% from its erstwhile projection of 3.3%. It besides predicted China's system would turn by 4.3% successful 2023, downgrading its September maturation estimates of 4.5%. 

The improvement slope has besides trimmed its maturation forecast for processing Asia and the Pacific to 4.2% from September estimates of 4.3%, and chopped its 2023 outlook for the portion to 4.6% from 4.9%. 

Recurring lockdowns successful China is 1 of the 3 large headwinds that are slowing down the region's betterment from the pandemic, according to ADB. Monetary argumentation tightening by cardinal banks astir the satellite and the prolonged Russia-Ukraine warfare are factors contributing to slower maturation arsenic well, the slope said. 

"The sooner China tin get determination … the sooner they tin get a existent betterment successful request and really boost maturation prospects" for itself and different economies successful the region, Park added. 

China's reopening volition beryllium bully for Hong Kong arsenic tourer arrivals volition apt increase, said Allan Zeman, president of the Lan Kwai Fong Group, a existent property proprietor and developer successful Hong Kong's clubbing district.

"China is the large kahuna and it's truly important that they are opening up … It's clip that they get backmost to enactment again," Zeman told CNBC connected Wednesday.

His comments came a time aft Hong Kong further eased question and mobility measures.

Restrictions connected Hong Kong travelers visiting bars oregon eating successful astatine restaurants person been scrapped, and radical successful the metropolis are nary longer required to usage the Covid interaction tracing app, LeaveHomeSafe. 

However, they can't wholly wantonness the app conscionable yet arsenic definite establishments whitethorn inactive necessitate them to amusement impervious of vaccination. 

It's been astonishing however rapidly businesses successful Hong Kong person bounced back, and those that near Hong Kong owed to its stringent measures successful the past are acceptable to instrumentality arsenic well, claimed Zeman.

"They've been truthful pleased with the effect of yesterday and galore are readying their trips back," helium said, referring to radical who bash concern successful Hong Kong.

With respect to tourism, China's reopening volition accelerate Hong Kong's betterment to "bring america backmost to the aged days again," according to Zeman.

"No tourists were coming truthful that tourer dollar was really, truly lacking. But I deliberation going guardant now, with tourists I'm expecting a large bounce and tourism coming backmost again." 

Residents successful Hong Kong person besides taken vantage of easing measures to question abroad. 

Hong Kong's emblem bearer Cathay Pacific reported connected Tuesday that it carried astir 530,000 passengers successful November. This was a 652.1% summation compared with the aforesaid clip past year, but a 79.9% driblet from pre-pandemic levels successful November 2019. 

"We continued to adhd much flights to much destinations past month, successful peculiar to and from fashionable places successful Japan arsenic good arsenic Southeast Asia, which saw immense request from Hong Kong," Cathay Pacific's Chief Customer and Commercial Officer Ronald Lam said successful a statement.

Although Hong Kong and China's betterment looks to beryllium connected the horizon, Zeman warned that opening up could beryllium "one measurement forward, past 3 back, past 2 steps guardant again."