Beijing shut parks and museums as China witnessed fresh spikes in cases nationally and more cities resumed mass COVID-19 testing on Tuesday. The fresh cases have grown fears for the economy.
China on Monday witnessed 28,127 fresh local cases nationally, coming closer to the peak in April. The cases in the southern city of Guangzhou and the southwestern municipality of Chongqing equals for about half of the total. The situation has worsened in the capital Beijing, where fresh cases have hit a new record, calling for more residents to stay alert.
Among the fresh cases, two new COVID-19 related deaths were recorded, compared with three over the weekend, in its first since May. The most recent wave is putting to the test changes China has made to its zero-COVID policy, which calls for authorities to be more targeted in their enforcement actions and avoid the widespread lockdowns and testing that have stifled the economy and irritated residents.
As these changes took place, China has in place some of the world’s strictest COVID restrictions, and the Covid measures have worried investors on the question of the economy and have led to rise in global stocks and oil prices to slip overnight.
According to Nomura analysts, localities responsible for roughly 19.9% of China’s total GDP were estimated to be under some kind of lockdown or restrictions on Tuesday, up from 15.6% the previous Monday.
Beijing warned on Monday that it is seeing most serious COVID-19 testing and made rules for visiting the city more stricter, making it compulsory for people visiting from anywhere else to the city to undergo three days of COVID testing.
Majority museums have been closed and amusements parks like Happy Valley and the city’s huge Chaoyang Park which is a favorite spot among runners, picknick goers, would be shut due to outbreak of coronavirus cases.
Investors anticipate greater easing as a result of China’s decision earlier this month to be more targeted in its enforcement of zero-COVID curbs, but many analysts warn against being overly optimistic.
Nomura analysts said, “The real picture may not be as rosy as it seems.” The statement came separately as they mentioned their expectation of a reopening to be accelerated only after March next year, the time when the reshuffle of China’s top leadership is finished.
Nomura wrote, “Reopening could be back and forth as policymakers may back down after observing rapid increases in cases and social disruptions. As such, local officials may be even more reluctant to be the initial movers when they try to sound out Beijing’s true intentions.”
