This is very strange, Hong Kong for years has been willing to grant Australia open skies between and beyond Hong Kong as long as they received the same rights in return.
The unrestricted rights Australia wants is to Europe, and Qantas and Virgin are unwilling to have Hong Kong carriers compete across the Pacific.
They don't want Cathay to operate a Hong Kong - Los Angles -Sydney - Hong Kong triangle. They could not compete.
For those who are unaware Australian carriers can already fly from Hong Kong regionally (like Bangkok and Singapore) and to Europe. Australia does not permit Hong Kong carriers to fly domestic or international services beyond Australia, like Sydney to Los Angles.