Coronavirus Stress-Tests China’s Fragile Financial System

There’s a sign pinned to the door of Peking Garden, a swanky restaurant in Hong Kong’s central business district and a popular venue for deal-closing dinners and gatherings of lawyers and financiers working nearby: “Temporary closure notice … We have received a report that one of our staff members is confirmed to be infected with the novel coronavirus.” The luxury stores surrounding the restaurant are empty; many office workers who once spent their lunch hours shopping here have been told to work from home for the foreseeable future.

For years, bankers, investors, and lawyers flocked to Asia’s financial centers to take part in a boom sparked by China’s rapid economic development and the opening of its financial markets. Now, as authorities struggle to contain the outbreak of a deadly new virus and restore public confidence, the question of whether China can live up to the hopes of those who have tied their fortunes to it looms larger than ever.