Cambodia – New Cambodia Entry Requirements and COVID-19 Update
Cambodia Entry Requirements: On June 10, authorities announced a requirement that all foreign travelers entering Cambodia pay a deposit of $3,000 upon arrival at airports for mandatory COVID-19 testing and potential treatment services. (Source: https://www.khmertimeskh.com/50732611/foreigners-to-be-charged-for-c-19-quarantine-tests/
Hong Kong – The China Banking and Insurance Regulatory Commission (CBIRC) announced an extension of the preferential treatment accorded to Hong Kong under the “China Risk Oriented Solvency System” for another year to 30 June 2021, allowing Mainland insurers who cede businesses to qualified local professional reinsurers to enjoy lower capital requirements. For details please read the press release in the IRL Hong Kong section.
United Kingdom – July Investment Insights from Zurich Insurance (UK)
- GDP contracted by more than 20% MoM in April as large parts of the economy were locked down
- Retail sales rose by more than 10% MoM in May as lockdown measures are eased and households increase spending
- The Bank of England expands its asset purchases by GBP 100bn but slows down its pace
Data show that GDP contracted by more than 20 percent MoM (month on month) in April. While there is still far to go until the economy fully recovers, there are some indications that the situation is improving. Retail sales rose by more than 10 percent MoM in May as lockdown measures are slowly eased and households increase their spending. Business sentiment shows signs of improvement as well, with the Composite PMI rising from 30 to 47.6 in June. To provide ongoing support to both the economy and financial markets, the Bank of England announced that it will expand its asset purchases by GBP 100bn to a target of 745bn. Providing a hawkish tilt to the decision, the BoE wants to reach that target by the end of the year, which implies that they intend to slow the pace of their asset purchases, providing a small headwind to gilts.