Shanghai has announced another brief lockdown of almost everyone in the city over the weekend to perform mass testing as new COVID-19 cases are found. This has triggered a run on food and other supplies, just days after being let out of the previous two-month lockdown.
The plan was first announced for one area with small number of cases, but within hours 14 of the financial hub’s 16 districts, and nearly all of the city’s 25 million residents, were added to the lockdown. Residents will be released after taking tests, but they will be locked down again for two weeks, if any cases turn up in their compounds.
Thursday revealed five additional cases among people in quarantine, making a total of 11 cases in the financial hub. Nationwide, China registered 73 additional infections.
The new lockdown threatens to continue economic disruptions that have so far impacted production at companies ranging from Sony to Tesla.
So far it is believed investors are just cautiously watching, perhaps distracted by the inflation numbers.
Kevin Li, fund manager at GF Asset Management (Hong Kong) Ltd. said, “Investors are watching but there is not much reaction at the moment given its just flare ups. If it expands into more areas that affect people turning to work, then it will lead to some volatility.”