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China’s Covid Lockdowns Could Threaten Half of Economy

  • Shenzhen restrictions will have direct hit on Guangdong: BE
  • Nomura says market expectations of growth are over-optimistic
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WATCH: Virus cases are spiking across China, with the 17.5 million residents of Shenzhen put into a lockdown that’s due to last until March 20.Source: Bloomberg
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Widespread lockdowns in China akin to the measures just taken in the southern technology hub of Shenzhen could affect half of the country’s gross domestic product, with negative implications for economies elsewhere too.

Authorities on Sunday placed Shenzhen’s 17.5 million residents into lockdown for at least a week amid a surge of Covid-19 infections in the city, an action that Bloomberg Economics said will deal a “direct hit” to Guangdong.