China’s COVID Lockdown Protests Cause Stocks to Drop in Hong Kong and China

• Stocks on the mainland and Hong Kong are being affected by COVID-19 lockdown protests. 
• Hong Kong’s benchmark Hang Seng Index fell more than 4% during the open, and closed 1.6% below. 
• Mainland China’s CSI 300 index lost 1.1% in the midst of demonstrations.

Stocks in Hong Kong, mainland China, and Hong Kong were lower Monday because of protests across the country over Beijing’s strict zero COVID lockdown policies. 

The Hang Seng Index in Hong Kong fell as high as 4% in the early hours of the day, but recovered to close at 1.6% lower. The CSI 300 index of mainland China lost 1.1% over the course of the day. 

While the dollar fell against China’s currency, the yuan recovered some losses. The currency is currently trading at around 7.2 USD and has lost about 13% against its greenback in 2022. 

Stocks also opened lower in the US due to protests that scared investors around the globe. 

Over the weekend, demonstrations broke out in major cities like Beijing, Shanghai, Wuhan, and Wuhan following the deaths of 10 people in an apartment fire at Urumqi.

A quiet vigil to remember the dead turned into an angry protest on Saturday that denounced zero-COVID policies. In some cities, protesters took aim directly at President Xi Jinping.

Virus lockdowns have been in place for close to three years in the world’s second largest economy. They are a significant hindrance to growth.

Experts say the demonstrations could alter the government’s policy. But, China reported a record-breaking number of COVID-19 patients recently.