China: stocks becoming uninvestable amid lockdowns and protests
China is struggling with its worst coronavirus outbreak since the pandemic began. The lockdowns that Beijing imposed to reduce contagion have sparked mass protests. Market moves on Monday pointed to growing financial risks from political volatility.
Protests broke out this weekend in cities including Beijing, Shanghai and Wuhan. A deadly residential fire in Xinjiang fuelled the anger of demonstrators against government policies. Party officials have been reluctant to import bulk foreign vaccines better than the locally developed Sinovac jab. They have resorted to tough lockdowns instead.
Public disorder first hit the commodities markets. Prices for copper, iron ore, crude oil and coal added to sharp losses last week. This pointed to weakening demand from China, the world’s largest importer.
This story originally appeared on: Financial Times - Author:Faqs of Insurances
