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Chinese stocks plummet, yuan slides amid COVID protests

Stock Markets Nov 27, 2022 09:24PM ET
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By Ambar Warrick 

Investing.com-- Chinese stock markets and the yuan slumped to an over two-week low on Monday as protests against the government’s anti-COVID measures broke out in several major cities, raising the prospect of more economic disruption. 

Chinese civilians clashed with the police in several cities including Beijing and Shanghai over the weekend, as public discontent with the zero-COVID policy hit a peak after a deadly fire in western China last week. This also comes after riots in Zhengzhou over the government’s reimposition of a lockdown in the city. 

China’s blue-chip Shanghai Shenzhen CSI 300 index fell 2.2%, while the Shanghai Composite index fell 1.6%. Selling also spilled over into Hong Kong, with the Hang Seng index tumbling 3.6%. 

The yuan slumped 0.8% to 7.2281 to the dollar, while the offshore yuan fell 0.6% to $7.2415. Both currencies and the Chinese indexes traded at their weakest level in over two weeks. 

The protests mark an extreme reversal in market sentiment towards China after hopes that the country would relax its strict zero-COVID policy spurred some buying into local markets earlier this month.

But China instead tightened its anti-COVID measures in recent weeks, as the country grapples with a record-high rate of daily infections. 

While the rise in infections is still small in comparison to levels seen in other countries, Chinese officials reiterated their commitment to the zero-COVID policy due to low vaccination rates and a lack of healthcare infrastructure. 

The strict zero-COVID measures severely weighed on Chinese economic growth this year, as the country shut down several industrial hubs to curb rising infections. While the government rolled out a slew of stimulus measures to help support growth, they have so far had a limited effect on the economy. 

Data over the weekend showed China’s industrial profits dropped further in October, while PMI data due later this week is expected to show continued weakness in business activity.

Chinese stocks plummet, yuan slides amid COVID protests
 

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Comments (7)
Ac Tektrader
Ac Tektrader Nov 27, 2022 11:48PM ET
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this is going to increased risk to foreign capital and investment in china .... it's about time that the west put more demands on the ccp to change it's criminal behavior towards it's own people...
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zoom zoom
zoom zoom Nov 27, 2022 11:48PM ET
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Ac Tektrader Biden has been around THAT LONG...House of Cards Falling down
Ac Tektrader
Ac Tektrader Nov 27, 2022 11:48PM ET
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zoom zoom, biden was a single senator the Reagan Republicans and the corporations with their allies the corporate dems started the insane accommodation towards the Chinese state.... blaming the biden administration is ludicrous.
Ac Tektrader
Ac Tektrader Nov 27, 2022 11:48PM ET
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under the Regan Administration the conservatives had taken over the Republican party and had turned control of economic policy to the whims of the major corporations.
Ac Tektrader
Ac Tektrader Nov 27, 2022 11:48PM ET
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zoom zoom if your going to blame biden then you are going to have to blame the Republican conservatives as well.....
Brad Albright
Brad Albright Nov 27, 2022 11:48PM ET
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It like talking to a Brick wall, AC. The numbskulls have no interests in incorporating facts into their thinking.
David Stevenson
David Stevenson Nov 27, 2022 11:25PM ET
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They had almost two years to vaccinate the population but did not. The govt is cheap! and controlling
Steven Heckler
Steven Heckler Nov 27, 2022 11:25PM ET
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So vaccination is your solution when those jabbed are getting covid more often and also being injured. Wake up
Walter Oney
Walter Oney Nov 27, 2022 11:25PM ET
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How this is working elsewhere in world? Why does only China need Zero Covid policy?
Ac Tektrader
Ac Tektrader Nov 27, 2022 11:25PM ET
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steve heckler, you could cause injury, stop spreading proven misinformation and lies.
Vidyasagar Deshpande
Vidyasagar Deshpande Nov 27, 2022 10:53PM ET
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China should get better vaccine like usa and stop this zero Covid game . Use proper vaccine
Heather Nwm
Heather Nwm Nov 27, 2022 10:53PM ET
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They can, but chose not to. It is not about Covid, the truth is their government use Covid as an excuse to lock down everyone.
Duke Maverick
Duke Maverick Nov 27, 2022 10:53PM ET
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the CCP has hidden agendas
Tom Swanson
Tom Swanson Nov 27, 2022 10:20PM ET
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Due to lack of infrastructure?
Art Carrano
Art Carrano Nov 27, 2022 10:17PM ET
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Take your country back.
Jimmy McGill
Jimmy McGill Nov 27, 2022 10:17PM ET
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We would all love to see that.
Alvin Tostig
Alvin Tostig Nov 27, 2022 9:49PM ET
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You have to admire their efforts to safeguard the elderly from covid, even if it means the end of society as they know it.
Tuan Nguyen
Tuan Nguyen Nov 27, 2022 9:49PM ET
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If they dont care about human right then what make you think they care about elderly ?
Robert Strougo
Robert Strougo Nov 27, 2022 9:46PM ET
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Communism take it or leave it thank god he is showing its time to leave it
Nelgybtc Dnyjec
Nelgybtc Dnyjec Nov 27, 2022 9:46PM ET
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lol china isn't communist. Get brainwashed harder.
John Laurens
John Laurens Nov 27, 2022 9:46PM ET
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Nelgybtc Dnyjec  they are a fascist totalitarian regime.... it's what communism ends up being.
Trevor Roberts
LimitUp Nov 27, 2022 9:46PM ET
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Nelgybtc Dnyjec CCP stands for Chinese Communist Party. You’re welcome.
 
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