Stock prices in both China and Hong Kong fell sharply following the shutdown of Shenzhen and Changchun, as the country continues its 'zero tolerance' strategy to COVID-19.
Stock prices in both China and Hong Kong fell sharply following the shutdown of Shenzhen and Changchun, as the country continues its"zero tolerance" strategy to COVID-19.Officials and workers wearing protective gear are working as barriers are placed to close off streets around a locked down neighborhood in Shanghai on March 15, 2022.
Economists say for now, smartphone makers and other industries can use factories and suppliers in other parts of China. But a bigger threat looms if business is disrupted at ports in Shenzhen, Shanghai or nearby Ningbo.They link Chinese factories that assemble most of the world’s smartphones and computers, as well as medical devices, appliances and other goods, with foreign components suppliers and customers.
Shenzhen suspended cross-border freight service at the Liantang crossing into Hong Kong. It said the Man Kam To crossing would be limited to handling fresh and live food to make sure Hong Kong gets adequate supplies. This year, the ruling Communist Party’s growth target is 5.5%. If achieved, that would be well below last year’s 8.1% expansion. But forecasters consider it aggressive at a time when construction, which supports millions of jobs, is in a slump due to a crackdown on debt in the real estate industry.
Jilin province, where Changchun is located, has barred residents from leaving the province and from traveling between cities within it.
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