COVID-Related Deaths Confined To Elderly W/ Health Issues, Assets Still Pressured

The Global Times notes that “Beijing reported another 2 COVID-19 deaths on Sunday: a female aged 91 and a male aged 88.” So that would be an additional 2 deaths to the 1 declared over the weekend (an 87-year-old). The fact that the deaths remain confined to the elderly is key here, coupled with the Global Times noting that both of those that passed away on Sunday had severe underlying diseases.

• Vaccination rates and the efficacy of the Chinese vaccines have been a worry for some time in China, however the death of some elderly individuals with complex underlying medical issues shouldn’t be too much of a gamechanger for China in terms of the bigger picture.
• Questions continue to do the rounds re: the country’s reaction function to COVID cases, as the it looks to move towards a lighter touch prevention strategy.
• The widening of localised restrictions across some of the country’s major cities is still a negative for risk-assets, which, when combined with the headlines surrounding the 3 deaths and questions re: China’s reaction function, is weighing on Chinese assets at the start of the week.