BEIJING – Covid controls in China have tightened over the past two weeks after more cities reported virus outbreaks.
Restrictions on industry and social activities hit 9. 2 percent of China’s gross domestic product on Thursday, up from Oct. 7 on Oct. 16, according to Nomura’s model.
“Since the beginning of the 20th National Party Congress on October 16, the number of domestic covid cases is obviously on an upward trajectory,” China’s leading economist Ting Lu and a team said in a report on Thursday. The national lockdown scenario has worsened significantly. “
By Thursday, mainland China reported 214 covid with symptoms and 1,123 without symptoms. Infections have been reported in more than 20 of China’s 31 provincial regions.
Among the many national outbreaks, infections in the capital forced Universal Beijing Resort to temporarily close from Wednesday. It was unclear if the hotel would reopen in time for Halloween weekend.
Apple Foxconn said Tuesday that its factory in Zhengzhou, China, was hit by a small covid outbreak.
However, many of the recent clusters of instances and upcoming Covid controls have occurred in less economically demanding parts of the country, such as the Qinghai and Xinjiang regions in the northwest.
Nomura’s report also noted that some localities have not announced lockdown measures, making it difficult to assess the impact.
In a speech at the start of the 20th National Congress of China’s ruling Communist Party, President Xi Jinping did not specify whether the Covid policy would end or continue. Analysts noted that the assembly focused more on adjustments to the body of workers than on an express economic policy.
The congress ended on October 22. The next day, China announced that the new party leadership would come with many Xi loyalists.
China is an ‘attractive market’ with ‘cheap’ shares, for the fund manager, giving 3 options
An electric vehicle manufacturer is placed as the organization is affected by China’s concerns, according to Mizuho.
Nomura analysts said they expect China’s strict covid controls to remain in place at least until March, “when the political reshuffle is completely over and the new leadership assumes full power. “
On a separate note, Nomura analysts maintained their fourth-quarter GDP expansion forecast of 2. 8% from a year earlier.
China’s National Bureau of Statistics said Monday that third-quarter GDP grew 3. 9 percent from a year earlier.
On Wednesday, Premier Li Keqiang led a State Council assembly that called for selling the resumption of expansion in the fourth quarter, with the third, state media said.
– Arjun Kharpal of CNBC contributed to this report.
Disclosure: Comcast is owned by NBCUniversal, the parent company of CNBC.
Do you have confidential news tips? We to hear from you.
Sign up for loose newsletters and get more CNBC in your inbox
Receive this in your inbox and more information about our and services.
© 2022 CNBC LLC. All rights reserved. A department of NBCUniversal
Data is a real-time snapshot * Data is behind by at least 15 minutes. Global monetary and industry news, inventory quotes, and market knowledge and analysis.
Data also by