China’s COVID-19 cases hit their highest level in two and a half months last week.
The figures dampened investor hopes for an easing of Covid restrictions, which have had considerable effects on the world’s second-leading economy.
Despite the rising number of cases and Beijing insisting that it will continue its “zero-COVID” policy, Chinese stocks soared through the week on hopes the zero-COVID policy would be discarded.
A prominent survey showed that services contracted further in October due to the repercussions of COVID-19 restrictions on businesses and consumption.
Also last week, China’s Caixin services purchasing managers’ index fell to 48.4, the lowest since May, from 49.3 in September.
Data released this week further showed that as a result of zero-COVID lockdowns imposed on major cities, some of the country’s richest regions have reported slower growth than the national economy for the first three quarters of the year.
Due to rising COVID-19 cases and expectations that the U.S. Federal Reserve would keep raising interest rates, Hong Kong and China stocks fell after a two-day rally.
Also, after Xi Jinping won a third leadership term and affirmed the continuation of his approach to COVID-19, investors were disappointed.
In its first comments after the congress, the National Health Commission said that authorities seek to control a sudden COVID-19 outbreak as quickly as possible, and the nation should fully commit to zero-COVID.
Meanwhile, China reported 3,200 daily local COVID-19 cases, the first time cases were above 3,000 since 17th August. (Big News Network)
