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China To Introduce Lockdown In Beijing Putting Pressure On It’s Economy

BEIJING : The Shanghai Composite fell 2.4% to 3,012 while the Shenzhen Component dropped 2.9% to 10,735 on Monday,

Hitting their lowest in nearly 2 years, amid fears that a Covid outbreak may prompt Beijing to introduce fresh lockdowns, putting more downward pressure on China’s battered economy.

A Covid flareup that shut down much of Shanghai appeared to worsen over the weekend after China ordered mandatory tests in a district in Beijing and locked down some areas of the capital.

The renewed selling comes as investors grow weary about a lack of follow-through on policy pledges to shore up growth and stabilize markets, with investors shrugging off a policy vow from the Chinese central bank on Friday.

Nearly all sectors in China fell, with sharp losses from heavyweights including CNOOC Ltd (-6.9%), China Merchants Bank (-6.4%), Contemporary Amper (-4.2%), Jiangsu Hengrui (-10%) and Longi Green Energy (-5.1%)