BEIJING (Reuters) – The number of new COVID-19 cases jumped in Guangzhou and other Chinese cities, official data showed on Tuesday, making the manufacturing city the new epicenter of the outbreak in China.
Nationwide, new infections reached 7,475 on Nov. 7, according to Chinese health authorities, up from 5,496 the previous day, the highest figure since May 1.
With 2,377 local cases reported, Guangzhou accounted for nearly a third of new infections, overtaking Hohhot in Inner Mongolia, raising fears of severe lockdown, as was the case in Shanghai.
The rise in the number of cases in the country is modest by global standards but significant for China, which is observing a “zero COVID” policy. This sudden rebound will test the country’s ability to maintain its health measures in a targeted manner, and could disappoint investors who hope for a lifting of restrictions. “We are seeing a backlash between the voices for loosening controls and the rapid spread of COVID,” said Nie Wen, an economist at Hwabao Trust in Shanghai. Considering how the health restrictions are affecting domestic consumption, Nie Wen lowered his fourth-quarter economic growth forecast from 4-4.5 percent to around 3.5 percent. Economic growth was 3.9% between July and September. The rise in the number of cases weighed on Chinese markets on Tuesday, without erasing the strong gains of the past week. Investors are watching the decline in Chinese markets with interest amid the threat of a new lockdown, and are focusing on small hints of gradual change – such as more targeted shutdowns and rising vaccination rates. “As harsh as the letter of the law is…there is a bit more relaxation,” said Damien Boey, chief macrostrategist at Australian investment bank Barrenjoey.
(Reporting Ryan Woo, Bernard Orr, Liz Lee, Jing Wang, Josh Ye in Hong Kong and Tom Westbrook in Singapore; French version Augustin Turpin, editing by Sophie Louet)
click here for restrictions
©2022 Reuters