China regulators, banks move to offices in Beijing as virus cases rise

HONGKONG BEIJING Reuters - Chinese regulators and state-owned banks are moving to split staff at their workplaces in Beijing, as businesses brace for a possible spike in COVID cases after China relaxed virus restrictions in a major policy shift.

The arrangements highlight how the lingering anxieties created by Beijing's three-year 'zero-COVID policy are likely to hamper a quick return to health for the world's second-largest economy, despite its pivot away from strict containment measures.

Two sources with knowledge of the matter said that China's top securities regulators this week have moved to a closed-loop system, which refers to a bubble-like arrangement that is commonly imposed as part of the virus prevention measures in China.

The sources said that the China Securities Regulatory Commission CSRC plans to allow only a couple of employees in each department to come to headquarters, and has asked some of them to prepare for a prolonged stay on the premises.

They added that other staff are required to work from home.

Manufacturers and eateries keen to stay open in China are choosing to err on the side of caution by keeping COVID 19 curbs until they get a clearer picture of how workplaces will be affected by the easing of stringent measures.

The China Banking and Insurance Regulatory Commission CBIRC has issued instructions to its staff based in Beijing and plans to implement split shift working arrangements next week, according to a person with direct knowledge of the matter.

One person with direct knowledge of the matter said that the National Development and Reform Commission NDRC has informed its staff that it would split them into two groups, with each returning to the workplace on alternate weeks.

The city has been operating at normal office staffing capacity this year, despite the stringent zero-COVID protocols, with staff not allowed to leave the city for nonessential reasons.

Bank of China BOC has released a notice to staff that it would split its Beijing workforce into three groups, working in the office on alternate weeks, according to a person with direct knowledge.

The bank has yet to decide when to start such rotations, the person added.

Two other people with knowledge of the matter said that other large state banks have also made similar arrangements - splitting staff into rotating shifts while maintaining a maximum of 10% -- 20% of staff occupancy in their headquarters in Beijing.

Tom Simpson, managing director and chief executive of the China-Britain Business Council, said that the fear among staff of getting COVID appears to be very high in Beijing at present, as one can assume that the virus will move through the city very quickly.

He said that companies are generally not forcing people to go in because of the new fear among people from getting COVID, which is putting people off from going into the office.

A representative from the European Union Chamber of Commerce in China said that members are planning for scenarios where they may be able to continue their general operations despite a rise in cases.

This is not an easy task at the moment, because there is still a lot of disagreement between the pandemic-related guidelines of different cities and regions. Since we are now three years into the epidemic, most companies have taken measures to allow staff to work remotely, said the representative.