Shanghai prepares for another mass testing campaign
China stocks on Monday (11) recorded their biggest drop in seven weeks, while Hong Kong shares suffered their biggest decline in a month on the back of an increase in domestic Covid-19 cases. Concerns about the end of monetary easing also weighed.
The CSI300 index, which groups the largest companies listed in Shanghai and Shenzhen, closed down 1.67 percent, while the Shanghai index lost 1.27 percent. Hong Kong’s Hang Seng index fell 2.77 percent.
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Many Chinese cities are adopting new restriction measures to control new infections, with Shanghai preparing for another mass testing campaign following the detection of the BA.5 omicron subvariant.
China’s central bank injected a minimum of 3 billion yuan ($447.41 million) through open market operations for the sixth consecutive day since last week, raising market suspicion that the authorities are phasing out monetary easing adopted during lockdowns against Covid-19.
