COVID Worry Doing The Rounds, Again

Plenty of focus remains on the Chinese re-opening horizon, with the recent tweaks to the country’s dynamic COVID zero policy aiding Chinese financial markets and the yuan in recent weeks. A reminder that sell-side consensus has moved towards a wider re-opening at some point in the Spring. However, headline flow since Friday’s local market close has not been positive.

• The city of Shijiazhuang will start conducting mass COVID testing in some areas, with the city recommending that all residents stay at home as it halts all in-person school & university classes.
• Meanwhile, RTRS headlines note that the Baiyun district in the city of Guangzhou has been locked down for 5 days, as of today, citing local health officials.
• Beijing’s most populous district has urged its population to stay at home after similar guidance was provided over the weekend
• There has also been talk of the city of Chongqing being in an effective state of lockdown, although this hasn’t received wider verification.
• Note that the weekend saw China record its first COVID-related death in nearly 6 months, with an 87-year-old passing away in the city of Beijing.