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Concerns about the economic victims of Covid China’s zero policy intensified Monday, as news that locking spread to Beijing sent shares, commodities and Yuan fell.
The CSI 300 Index benchmark is closed nearly 5%, at the lowest level since April 2020, destroying profits from the March promise which sweeps by officials to support the economy. Yuan Darah dropped to the weakest level in 17 months about concerns about increasing the flow of capital outflow and sinking oil under $ 100 regarding concerns over China’s request.
Flareup Covid which killed most of Shanghai seemed to deteriorate on weekends after China ordered a mandatory test in the Beijing District and locked several regions in the capital of more than 20 million people. Officials have warned more cases in the coming days. The news echoed around the global market with futures and equity of futures under pressure and haven such as dollars and treasury to get.
There are concerns about the Covid situation in Beijing evolved into what happened in Shanghai with some prolonged locking that bit the economy,” said Kevin Li, Portfolio Manager at GF Asset Management (Hong Kong) Ltd.
Traders began to have an impact on the potential impact of limiting Coronavirus on the second largest economic growth in the world, which has shown signs of slowing thanks to the property crisis and increasing regulations. The fear of growth came in the midst of the expectation of rapid interest rate increases from the Federal Reserve, which was more able to encourage capital outflows from China and burden Yuan.
Selling new coming when investors become tired about the lack of follow -up to the policy promise last month to support growth and stabilize the market. The market ignores the latest Friday policy oath from the Chinese Rakyat Bank to ensure stability, which repeats comments seen in the past month.
Analysts have begun to reduce the estimated economic growth for this year below the 5.5% government target given the locking rate, after a number of producers and car makers highlighted supply chain disorders.
In the stock market, the support paths watched carefully for the Shanghai composite index have been violated. Benchmark is closed below the level of 3,000 which is psychologically important after a decline of 5.1%. The Chinese technology stock index listed in Hong Kong fell 4.9%.
