(Bloomberg) -- Ken Griffin’s Citadel and Citadel Securities are snapping up extra office space in Hong Kong to accommodate expanding teams, a vote of confidence in a city that’s seen an exodus of professionals frustrated by its Covid restrictions and Beijing’s tightening grip. 

Hedge fund Citadel leased the 59th floor in premium office tower Two IFC, adding 22,000 square feet, while market maker Citadel Securities took up a similarly sized 42nd floor, according to people familiar with the matter. That’s in addition to a third floor they already occupy in the building.

The two companies grew their Asia-Pacific headcount by more than 60% to about 350 people in the past year and a half, the people added. Staff in Hong Kong account for about 71% of that. The companies confirmed they were leasing the new office space, according to an emailed statement. 

The Miami-based firms are aggressively expanding in Hong Kong at a time when others have shifted resources away from the hub or left. Carl Huttenlocher’s hedge fund firm Myriad Asset Management Ltd. planned to shut its office in the city where it was founded and based for much of its 11 years, Bloomberg reported in May, as pandemic curbs made travel difficult.

The city is the Asian headquarters for Citadel and Citadel Securities, which operate independently. 

Hong Kong is facing a talent shortage due to a deepening political crackdown and stringent Covid controls. The city’s market watchdog said earlier this year that it had lost 25% of its junior professional staff, warning that Hong Kong’s status as an international financial hub was at risk.

Still, Hong Kong’s position as a bridge to China is hard to dismiss and a number of firms have remained bullish. Bill Winters, the chief executive officer of Standard Chartered Plc, told Bloomberg TV this month that the bank had seen more expatriates coming into the city than leaving in the past year or so. 

Citigroup Inc. said in February it had increased its staff in Hong Kong by more than 300 in the prior 12 months, a third of which were recruited or transferred from overseas.

That’s provided some relief for the city’s property tycoons who saw vacancies for office space they operate reach a record high in December. Haitong International Securities Group Ltd. relinquished floorspace in a tower on the edge of Hong Kong’s central business district, people familiar said in June. In recent years, BNP Paribas SA and Standard Chartered gave up floors in their Hong Kong headquarters as well. 

Citadel set up operation in Hong Kong in 2005, and Citadel Securities arrived four years later. Citadel manages $53 billion of investment capital as of July 1. The market making business has people based across Asia-Pacific including in mainland China, Australia and Singapore. 

The companies provided benefits for Hong Kong-based employees like reimbursement for hotel quarantine for personal trips and lunch deliveries during Covid.

(Updates with benefits the companies provided to HK staff during Covid; A previous version of the story was corrected to show number of APAC staff)

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