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Here’s where mainland Chinese traveled overseas for the Lunar New Year

BEIJING — Travelers from mainland China stuck close to home in Asia during the Lunar New Year, the first holiday after Beijing relaxed its Covid-related border controls.

Hong Kong and Macao were the most popular spots, said Trip.com, citing flight bookings on its platform for the first four days of the Lunar New Year. The seven-day holiday kicked off on Saturday.

Here are the next three most popular overseas destinations for mainland travelers, according to Trip.com:

3. Bangkok

4. Singapore

5. Phuket, Thailand

Flight bookings for travel from the mainland to overseas destinations during the first four days of the holiday quadrupled from a year ago, Trip.com said.

In late December, Beijing announced that beginning Jan. 8 travelers would no longer need to quarantine upon arrival on the mainland, and that Chinese citizens could start to resume leisure travel abroad. The change ended nearly three years of border controls.

However, Japan and South Korea — both popular among Chinese tourists — subsequently imposed temporary restrictions on travelers from China, including limits on visas and quarantining Covid-positive individuals.

Singapore has not announced any changes, while Thailand scrapped its plan to require international visitors to show proof of Covid vaccination, just days after announcing it.

China has seen a wave of Covid infections after Beijing ended most domestic Covid controls in early December. A negative Covid test is still required for travel to the mainland.

In 2019, Chinese outbound tourists spent $54.7 billion on shopping, according to Euromonitor International.

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Mainland China’s total daily Covid cases soar above Shanghai lockdown highs

Only a few vehicles, including one with two health workers, drive through Beijing’s central business district on Nov. 23, 2022, as the area has announced tighter Covid controls.

Kevin Frayer | Getty Images News | Getty Images

BEIJING — Mainland China reported more than 31,000 Covid infections for Wednesday, including cases without symptoms.

That surpassed the 29,317 high seen in mid-April, during the Shanghai lockdown, according to CNBC calculations of Wind Information data. 

However, daily Covid infections with symptoms remain well below the high seen in April. Nearly 90% or more of total Covid cases reported in recent days have been asymptomatic, the data showed.

The southern city of Guangzhou, the national capital of Beijing and the southwestern municipality of Chongqing have been the hardest hit in the latest Covid wave.

But nearly all of China’s 31 province-level regions have reported new Covid infections, with and without symptoms, each day.

Since the weekend, six Covid-related deaths have been reported as of Wednesday, mostly in Beijing.

China’s stringent Covid controls have weighed on sentiment and business activity. National GDP barely grew during the second quarter due to the Shanghai lockdowns. As of the end of the third quarter, growth for the year was up by just 3% from a year ago — well below the official target of around 5.5% announced in March.

Factories located near Covid outbreaks have tried to maintain operations using what’s called closed-loop management, which typically requires staff to live on-site.

Business representatives have noted difficulties in getting workers from locked down neighborhoods to factories, while staff living at production sites for too long often become fatigued.

During the latest Covid wave, Apple supplier Foxconn’s iPhone factory in the city of Zhengzhou has drawn attention for videos of renewed worker unrest shared on social media. It was unclear how many of the factory’s roughly 200,000 staff were involved, or whether there was any impact to production.

Foxconn said Wednesday that some new hires had appealed to the company about a work allowance, while stating that contrary to speculation, new hires would only move into disinfected dormitories.

Separately, Zhengzhou said those living in the central part of the city should not leave their homes for five days beginning Friday while authorities conducted mass virus testing.

China this month trimmed quarantine times and has announced other measures to try to make Covid controls more targeted. But authorities have emphasized their zero-Covid policy, while there are concerns whether the public health system could handle a surge in infections.

Targeted Covid measures

The latest Covid controls on in-person business and apartment building lockdowns are scattered across parts of China, a country of 1.4 billion people. Fewer measures are publicly announced, while restrictions are increasingly targeted and can range from just a few days — to weeks or longer.

For example, Shanghai Disneyland said it plans to resume operations on Friday, after suspending operations due to Covid on Oct. 31.

Meanwhile, despite tighter restrictions in Beijing’s business district, Universal Beijing Resort on the city outskirts remains open, after a five-day closure that ended Oct. 31.

— CNBC’s Jihye Lee contributed to this report.

Disclosure: Comcast is the owner of NBCUniversal, parent company of CNBC.

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Sanibel Causeway: At least 2 dead on Sanibel Island, which is cut off from Florida’s mainland after Ian’s storm surge severs causeway



CNN
 — 

Hurricane Ian has left at least two people dead on Sanibel Island and ripped away several parts of the causeway that was the island’s only access to Florida’s mainland.

On Thursday night, dozens of people remained stranded, according to Sanibel Mayor Holly Smith. At least five sections of the Sanibel Causeway – which connects the barrier islands, including Sanibel and Captiva, to the mainland – were washed away by the storm, Lee County officials said. (Lee County includes Fort Myers in addition to Sanibel and Captiva islands and Cape Coral.)

Roughly 200 households did not evacuate ahead of the storm, the mayor said. Twelve people were rescued off the island with injuries and about 40 people were rescued without injuries, the mayor told CNN. Sanibel City Manager Dana Souza reported the two fatalities.

When asked later on CNN if the city is currently livable, the mayor said, “Frankly, no.”

Kim Carman was among those who left ahead of the storm. She has been staying in Fort Myers since, and doesn’t expect to be back on Sanibel Island – where she was preparing to move into a new condo in a matter of days – for several weeks.

“It’s total devastation. I never dreamed I’d see anything like this in my lifetime. Especially on Sanibel,” Carman told CNN’s Erin Burnett Thursday night. “You look at it and it does not look real, it is just so overwhelming.”

“I don’t think any of us have totally processed it yet,” she said, adding many people are now facing “total financial devastation” after losing everything in the storm.

Because of the severed causeway, rescue teams were being transported by helicopter to the islands, where they went door-to-door checking on residents, Florida’s State Fire Marshal Jimmy Patronis told CNN’s Wolf Blitzer Thursday evening. Florida’s National Guard was assisting in those transportation efforts, Patronis added.

An estimated 6,400 people lived in the City of Sanibel as of April 2021, per the US Census Bureau. The islands are home to a number of hotels and resorts, as their beaches draw a significant amount of tourists each year.

A 2017 City of Sanibel count measured annual bridge traffic over the causeway at over 3 million vehicles.

Lee County officials were assessing damage Thursday and also conducting search and rescue operations, Lee County Manager Roger Desjarlais said in a Thursday afternoon briefing.

Federal urban search and rescue teams were deployed from across the country and expected in the county Thursday and into the early Friday hours, and were “prepared to go to work right away,” he added.

All 15 shelters in the county that opened prior to the storm’s arrival remained open, Desjarlais said, adding that by late Wednesday, roughly 4,000 people were there.

“Given the amount of damage in the community, I think it’s reasonable to expect that those shelters will begin to fill up a little more. We have space for about 40,000 people,” the county manager added.

A boil water order was in place countywide, he said. Bridge inspections were also underway across the county, with help from engineers at the Florida Department of Transportation. Officials hope all bridges will be inspected by Friday, Desjarlais said.

“In the meantime, avoid them if you can,” he said. “When you think about the failures that have taken place on the Sanibel Causeway and the bridges on the way to Pine Island, I would never have thought that those bridges would fail the way they have, so exercise an awful lot of caution.”

There was also “extensive damage to the buildings,” on Sanibel Island, he said, and all bridges to Pine Island have also failed, so there is no way to travel there by vehicle.

“I can tell you that in all these years I have not seen damage to Lee County from a storm like this. When you take a look at the barrier islands, particularly from the air, it’s very clear to see where the storm came onshore,” Desjarlais said in Thursday’s briefing.

Sanibel was devastated, Gov. Ron DeSantis said in a news conference Thursday afternoon, adding the area was hit with a “biblical storm surge.”

“It washed away roads, it washed away structures that were not new and could withstand that,” he said, adding that while many people evacuated, some people had been brought off the island safely. Air operations continue, the governor said, since the area is inaccessible by ground.

The causeway will be rebuilt, DeSantis said. “But that’s not something that will happen overnight.”

Residents were urged to stay inside to avoid injuries and to allow first responders to assess the damage, Lee County officials said Thursday.

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Xi Jinping leaves mainland China for the first time since the beginning of pandemic

Xi is expected to spend two days in the financial hub and attend a series of official events to mark both the July 1 handover and the inauguration ceremony of the city’s next Beijing appointed leader John Lee, a former police officer and security chief.

In the almost 900 days since Xi last left the mainland on January 17, 2020, his diplomatic activities have been limited to virtual summits and video conferences, lending particular significance to his Hong Kong trip.

Xi arrived in the city Thursday afternoon, via high-speed train from the Chinese border city of Shenzhen, whereupon he was met by large crowd waving national flags and chanting in unison: “Welcome, welcome, a warm welcome.”

He was then led along a red carpet, as colorful lion dancers performed, adding to the din of drumming, chanting and trumpets.

Xi was first greeted by Hong Kong’s departing Chief Executive Carrie Lam and her top officials. After exchanging a few words, Xi and his delegation slowly made their way through the station, waving to the crowd and speaking with other officials present.

“It has been more than five years since my last visit to Hong Kong. Over the past five years, I have been paying close attention to Hong Kong and caring about it,” said Xi in a short speech afterward.

“Over the past few years, Hong Kong has withstood one severe test after another and overcome one risk and challenge after another. After weathering the storms, Hong Kong has emerged from the ashes with vigorous vitality.”

Leaving the Covid bubble

Xi’s arrival coincides with forecasts of a typhoon bringing heavy winds and rain, and comes after weeks of uncertainty as to whether he would risk leaving mainland China’s stringent zero-Covid bubble, to travel to a city now reporting more than 1,000 new Covid cases a day.
Under Xi, China stands isolated from the world in pursuing a zero-tolerance approach to the virus with the country’s international borders shut and travel strictly curtailed.
Xi reaffirmed the policy on Wednesday during a symbolic visit to Wuhan, the central Chinese city where the virus first emerged in late 2019, saying that he would rather “temporarily sacrifice a little economic growth” than “harm people’s health,” according to state news agency Xinhua.

“If we calculate the total costs and benefits, our Covid policies are the most economical and effective,” Xi said, adding that China had the ability to continue its zero-Covid approach “until the final victory.”

While Hong Kong has been heavily influenced by Beijing’s uncompromising health policies, implementing strict quarantine and border controls, as well as enforced social distancing measures, it has so far avoided the type of prolonged city-wide lockdowns or compulsory mass testing seen in mainland cities such as Shanghai and Xi’an.

In advance of Xi’s visit, Hong Kong imposed a range of Covid restrictions. As of last week, top officials have been forbidden from attending public events and restricted to using private vehicles when commuting. They have also been tested daily for Covid, and must spend Thursday night in a quarantine hotel before Friday’s handover ceremony.

Arriving in a changed city

The last time Xi visited Hong Kong to mark the handover was in 2017, for the 20th anniversary, when he was met with streets full of pro-democracy protesters.

But no protests are expected this year. Most Hong Kong pro-democracy groups have disbanded following the enactment of the city’s sweeping national security law two years ago.

A subsequent crackdown saw nearly all of Hong Kong’s leading pro-democracy figures, including activists and politicians, either jailed or forced into exile.

Of the organizations that remain, none have applied for permits to stage peaceful protests during Xi’s trip, according to police. The League of Social Democrats, one of the few surviving pro-democracy political parties, said it would not stage any protests after several members met with national security police.

The Hong Kong government has repeatedly defended the national security law, saying it has restored order to the city, which was rocked by pro-democracy, anti-government protests in 2019.

Venues closed, no-fly zone

Taking no chances, police have ramped up security and shut down areas close to key venues. Pedestrian footbridges, highways and one train station in some of the busiest areas of Hong Kong have been temporarily closed for Thursday and Friday.

A no-fly zone has also been established across the city’s harbor, with drone use restricted throughout Xi’s visit.

Authorities have also heavily restricted media access to the handover celebrations, a far cry from the open reporting environment and freewheeling local press of years past.

According to the Hong Kong Journalists Association (HKJA), at least 10 journalists working for local and international organizations had their applications to cover the events rejected for “security reasons.”

“With media unable to send journalists on the ground, the HKJA expresses utmost regret over the rigid reporting arrangements made by the authorities for such a major event,” the press group said on Tuesday.

CNN’s Kathleen Magramo contributed reporting.

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Xi Jinping to visit Hong Kong for 25th anniversary of handover, in first trip outside mainland China since pandemic began

“Xi Jinping will attend the celebration of the 25th anniversary of Hong Kong’s return to the motherland and the inauguration ceremony of the sixth government of the Hong Kong Special Administrative Region,” state news agency Xinhua said.

The confirmation comes after two top Hong Kong officials tested positive for Covid-19 this week, raising concerns over a potential visit by state leaders for the July 1 celebrations, which include the swearing in of the city’s new leader on the anniversary of its 1997 handover from British rule.

Secretary for Constitutional and Mainland Affairs Erick Tsang and director of the Chief Executive’s Office Eric Chan both tested positive through nucleic acid tests and are undergoing isolation, a Hong Kong government statement said on Thursday.

Their cases had cast doubt on whether Xi would risk entering the city, given China’s stringent zero-Covid policy — as well as on the robustness of the city’s “closed-loop” arrangement, which requires officials to avoid public engagements and enter quarantine ahead of the planned ceremonies.

As China sticks to a byzantine approach of snap lockdowns, mass testing and quarantining, Chinese officials appear to be taking extra precautions not to catch the virus.

Xi has not left mainland China since the outbreak of the pandemic more than two years ago — but even before Saturday’s confirmation of his visit, the Hong Kong government had started to prepare for the arrival of a delegation of state leaders from across the still largely sealed border with the mainland.

Top Hong Kong officials entered the closed loop system on Thursday, under which they can only travel between home and work by private vehicle and must spend a night in a quarantine hotel on the eve of the handover anniversary. They are also subject to daily testing for Covid-19.

“Mr Tsang and Mr Chan last went to work on June 22 and June 20 respectively. They wore masks and followed relevant disease prevention measures at work, including rapid antigen tests conducted daily with negative results obtained. They have no recent travel history,” the government statement said.

The statement made no mention of the two officials’ symptoms.

Chan is set to become the city’s No. 2 official on July 1, as incoming Hong Kong leader John Lee takes the helm.

Despite high vaccination rates and a reduction in overall cases, the Hong Kong government remains committed to its own “zero Covid” style policy, maintaining stringent social distancing and contact tracing measures, as well as tight border restrictions — including a mandatory seven day hotel quarantine for all arrivals.

Additional reporting by CNN’s Wayne Chang, Larry Register, Martin Goillandeau and Hannah Ritchie.

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Asia-Pacific stocks mixed; mainland China markets closed

SINGAPORE — Shares in Asia-Pacific struggled for direction on Monday, as investors continue to monitor the U.S. Treasury yield curve.

The Nikkei 225 in Japan slipped fractionally as shares of Tokyo Electron dropped around 2%. The Topix index climbed about 0.1%.

South Korea’s Kospi dipped 0.49%.Elsewhere in Australia, the S&P/ASX 200 rose 0.43%.

MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.08% lower.

Markets in mainland China are closed on Monday and Tuesday this week for holidays.

A closely watched part of U.S. Treasury yields inverted on Friday as short-term rates jumped following the release of jobs data stateside, raising concerns over a potential recession on the horizon.

The benchmark 10-year Treasury yield last sat at 2.3895%, while the rate on the 2-year Treasury note was at 2.4625%. Yields move inversely to prices, with 1 basis point equal to 0.01%.

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Currencies

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 98.627, as compared to levels below 98 seen in late March.

The Japanese yen traded at 122.52 per dollar, stronger than levels above 124 seen against the greenback last week. The Australian dollar was at $0.7485, having traded in a range between $0.747 and $0.753 for much of last week.

Oil prices were lower in the morning of Asia trading hours, with international benchmark Brent crude futures down 0.88% to $103.47 per barrel. U.S. crude futures slipped 0.93% to $98.35 per barrel.

— CNBC’s Patti Domm contributed to this report.

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China detects first case of Omicron coronavirus variant on the mainland

The case, reported in the southern city of Guangzhou Tuesday, came a day after health authorities in the northern port city of Tianjin said they detected mainland China’s first Omicron infection — also in a traveler who arrived from overseas.

The Tianjin case was identified as an asymptomatic carrier on arrival. The individual was already in quarantine while genome sequencing confirmed he had the Omicron variant — suggesting the variant had not been directly exposed to local residents.

The second case, a 67-year-old man, entered China on November 27 in Shanghai and underwent two weeks of centralized quarantine, during which time he repeatedly tested negative. The man then flew from Shanghai to Guangzhou on AirChina flight CA1837. AirChina staff confirmed to CNN the flight was nearly full, with all economy seats taken and only six seats remaining in business class.

The man then entered into home quarantine. He was tested again on December 12 — a full 15 days after first arriving in China, with the result coming back positive in the early hours of December 13. Subsequent genome sequencing reviewed by the Chinese Center for Disease Control and Prevention confirmed it was the Omicron variant, according to authorities.

Unlike the Tianjin case, the man has been diagnosed as a confirmed case — meaning he has symptoms. He is now being treated in isolation in hospital, officials said. Following his diagnosis, 10,544 people connected to the man have been tested for the virus, and so far all results returned negative.

Chinese authorities did not reveal when, where or how the man caught the virus. On average, it takes between 5 to 6 days from when someone is infected with the virus for symptoms to show, however it can take up to 14 days, according to the World Health Organization.

Much remains unknown about the fast-spreading Omicron variant, including its incubation period.

The variant carries an unusually large number of mutations that scientists worry could potentially make it more transmissible and less susceptible to existing vaccines.

Last month, omicron was identified in two returning travelers in separate rooms on the same floor of a designated quarantine hotel in Hong Kong, leading scientists to believe it may have passed through the air in the hallway.

Chinese public health experts and state media have previously voiced confidence in the country’s ability to tackle the new variant, citing China’s strict border control measures and its ability to swiftly identify and isolate infected cases and their close contacts.

In China, all overseas arrivals must be tested for Covid before they leave the airport, followed by at least two weeks of centralized quarantine. This is often followed by another lengthy period of home isolation. Through out the process, international arrivals are prevented from coming into contact with the wider community until they have completed the required quarantine process.

But China’s ambitious zero-tolerance strategy — composed of mass testing, snap lockdowns and extensive quarantines — also comes with great economic costs, as well as no shortage of disruption to daily life.

Beijing is due to host the Winter Olympics in February. As the event approaches, authorities are resorting to ever more stringent measures to curb local outbreaks, which have continued to flare up with increasing frequency. The country has now reported locally transmitted cases everyday for the past eight weeks.

On Tuesday, eastern Zhejiang province, home to the country’s key manufacturing and export hubs, reported 44 new cases, bringing the total caseload over the past week to above 200.

Authorities in virus-hit areas swiftly quarantined tens of thousands of residents, suspended businesses, events and tour groups, and canceled flights, ferries and bus services.

The travel restrictions in medium- and high-risk areas will be in place until March 15 next year — well after the Winter Olympics is over, and around the time the country’s annual legislative meetings are completed in Beijing.

Keeping infections away from the Chinese capital is a top priority for the government, as the city gears up for the Games. All flights from the city of Ningbo, a major industrial hub, to Beijing have been canceled, while only one daily flight from Hangzhou, the provincial capital, to Beijing is allowed.

In other parts of the country, infections are also being reported. In the north, Inner Mongolia reported 5 symptomatic cases and 4 asymptomatic infections, while the provinces of Heilongjiang and Shaanxi each reported one confirmed case, according to the National Health Commission.

In the southern province of Guangdong, two people in the manufacturing hub of Dongguan were tested positive Monday, prompting a local lockdown.

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Mainland China reports its first omicron Covid case

Medical worker collects swab from a citizen for the COVID-19 nucleic acid test at Zhenhai District on December 7, 2021 in Ningbo, Zhejiang Province of China.

Hu Xuejun | Visual China Group | Getty Images

BEIJING — Mainland China reported its first case of the omicron Covid variant on Monday in the city of Tianjin, about two hours’ drive from the capital of Beijing.

The omicron case was found in a traveler from overseas, who showed no symptoms but tested positive on Thursday, according to Tianjin’s local health commission. The patient is in isolated treatment at a hospital, the commission said.

On Monday, the United Kingdom reported the first publicly confirmed death globally from the omicron variant. The newly identified variant — first reported in South Africa in late November — is highly transmissible and heavily mutated, and has raised concerns about the efficacy of existing coronavirus vaccines.

Covid-19 first emerged in mainland China in late 2019. The country controlled the outbreak within months, but the virus had meanwhile become a global pandemic.

Mainland China has reported only pockets of Covid-19 cases in the last 18 months, as Beijing pursues a tough “zero-tolerance” policy that can mean sudden neighborhood lockdowns or travel restrictions. The latest reemergence of Covid cases has been concentrated in Inner Mongolia and the southeastern part of the country.

The mainland health commission reported a total of 51 locally confirmed cases for Monday, and 25 attributed to travelers from overseas, with no new deaths.

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Mainland China markets return to trade from holiday

SINGAPORE — Shares in Asia-Pacific slipped in Wednesday morning trade. Markets in mainland China are set to return to trade following holidays on Monday and Tuesday.

The Nikkei 225 in Japan slipped 0.3% in early trade while the Topix index shed 0.36%.

In Australia, the S&P/ASX 200 dipped fractionally.

MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.13% lower.

Mainland China markets reopen on Wednesday following holidays on Monday and Tuesday. Investors will watch for reaction to the ongoing fallout surrounding embattled developer China Evergrande Group.

Markets in Hong Kong and South Korea are closed on Wednesday for holidays.

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Overnight stateside, the Dow Jones Industrial Average dipped 50.63 points to 33,919,84 while the S&P 500 declined around 0.1% to 4,354.19. The Nasdaq Composite outperformed, rising 0.22% to 14,746.40.

Investors look ahead to the policy statement from the U.S. Federal Reserve, expected Wednesday stateside, for signals on when the central bank could taper its bond purchase program.

Currencies and oil

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 93.228 after sliding from levels above 93.3 earlier in the week.

The Japanese yen traded at 109.14 per dollar, having strengthened form around 110 against the greenback earlier this week. The Australian dollar changed hands at $0.7227 following its decline yesterday from above $0.725.

Oil prices were higher in the morning of Asia trading hours, with international benchmark Brent crude futures up 0.24% to $74.54 per barrel. U.S. crude futures gained 0.27% to $70.68 per barrel.

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Map shows latest outbreak in mainland China as delta cases rise

New pockets of Covid-19 cases have emerged in parts of mainland China in the last few weeks as the highly infectious delta variant spreads across the country.

So far this month, locally transmitted cases reported in mainland China have climbed to 878 — more than double the 390 cases recorded for the entire month of July, according to CNBC’s tally of daily data by China’s National Health Commission.

To be clear, the number of reported infections in China is much lower than many countries — including the U.S. where new cases have averaged around 100,000 a day, and in Southeast Asia where daily cases have risen sharply.

Still, Chinese authorities have imposed targeted lockdowns, tightened movement controls, and ordered mass testing to curb the latest resurgence in Covid cases.

Impact on China’s economy

Economists have raised concerns about China’s zero tolerance for Covid. The government has been insistent on stamping out any flare-ups in Covid cases, even as many countries globally — including the U.K. and Singapore — have started to accept that the virus will never go away.    

The latest resurgence in Covid cases in China comes as some economic growth engines continue to lose momentum, while domestic consumption struggles to fully recover, HSBC economists said in a Wednesday report.

The economists noted that the number of new infections reported in China has been the highest since an outbreak in northern China in December 2020.

“As such, many provinces and cities have tightened their social-distancing restrictions, and issued cross-city and cross-province travel bans,” they said in the report.

“These measures will inevitably weigh on growth, especially domestic consumption which has yet to see a full recovery back to the pre-pandemic levels,” the analysts said.

HSBC said mounting economic pressure could prompt Beijing to implement a more “supportive” fiscal policy. That could include larger infrastructure spending, and tax cuts for small- and medium-sized companies, said the bank.

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