UPDATE 3-China's COVID epicentre shifts to Guangzhou as outbreaks widen

2 weeks ago 17

[1/2] A closed edifice and shops are seen successful Guangzhou's Xiaobei neighborhood, nicknamed "little Africa", arsenic it starts to retrieve from a lockdown successful April aft the outbreak of the coronavirus illness (COVID-19), Guangdong province, China June 17, 2020. REUTERS/David Kirton

  • Southern manufacturing hub warring worst COVID-19 flare-up
  • Cases treble successful Zhengzhou, accumulation basal for Apple supplier
  • Chinese stocks, currency gaffe implicit microorganism fears

BEIJING, Nov 8 (Reuters) - New coronavirus cases surged successful Guangzhou and different Chinese cities, authoritative information showed connected Tuesday, with the planetary manufacturing hub becoming China's latest COVID-19 epicentre and investigating the city's quality to debar a Shanghai-style lockdown.

Nationwide, caller locally transmitted infections climbed to 7,475 connected Nov. 7, according to China's wellness authority, up from 5,496 the time earlier and the highest since May 1. Guangzhou accounted for astir a 3rd of the caller infections.

The summation was humble by planetary standards but important for China, wherever outbreaks are to beryllium rapidly tackled erstwhile they aboveground nether its zero-COVID policy. Economically captious cities, including the superior Beijing, are demanding much PCR tests for residents and locking down neighbourhoods and adjacent districts successful immoderate cases.

The crisp rebound volition trial China's quality to support its COVID measures surgical and targeted, and could dampen investors' hopes that the world's second-largest system could easiness curbs and restrictions soon.

"We are seeing a crippled betwixt rising voices for loosening controls and accelerated spreading of COVID cases," said Nie Wen, a Shanghai-based economist astatine Hwabao Trust.

Considering however the nationwide COVID curbs are crushing home consumption, Nie said helium had downgraded his fourth-quarter economical maturation forecast to astir 3.5% from 4%-4.5%. The system grew 3.9% successful July-September.

The rising lawsuit load dragged connected China's banal markets connected Tuesday, but shares person not yet surrendered past week's large gains.

Investors spot China's beaten-down markets arsenic an charismatic imaginable arsenic a planetary slowdown looms, and person focused connected tiny clues of gradual alteration - specified arsenic much targeted lockdowns and advancement connected vaccination rates.

"No substance however harsh the missive of the instrumentality is...there is simply a small spot much loosening," said Damien Boey, main macro strategist astatine Australian concern slope Barrenjoey.

NO FULL LOCKDOWN YET

Guangzhou, superior of Guangdong province, reported 2,377 caller section cases for Nov. 7, up from 1,971 the erstwhile day. It was a melodramatic leap from double-digit increases 2 weeks ago.

Surging lawsuit numbers successful the sprawling confederate city, dubbed the "factory level of the world", means Guangzhou has surpassed the bluish Inner Mongolia metropolis of Hohhot to go China's COVID epicentre, successful its astir superior outbreak ever.

Many of Guangzhou's districts, including cardinal Haizhu, person imposed varying levels of curbs and lockdowns. But, truthful far, the metropolis has not imposed a broad lockdown similar the 1 successful Shanghai earlier this year.

Shanghai, presently not facing a COVID resurgence, went into a lockdown successful April and May aft reporting respective 1000 caller infections regular successful the past week of March.

"We person been moving from location for the past mates of days," said Aaron Xu, who runs a institution successful Guangzhou.

"Only a fewer compounds person been locked up truthful far. Mostly we are seeing disruptions successful the signifier of nationalist transit services being suspended and compound information barring couriers and nutrient delivery. And we person to bash PCR tests each day."

RISING CASES

In Beijing, authorities detected 64 caller section infections, a tiny uptick comparative to Guangzhou and Zhengzhou, but capable to spark a caller burst of PCR tests for galore of its residents and a lockdown of much buildings and neighbourhoods.

"The lockdown concern has continued to deteriorate rapidly crossed the state implicit the past week, with our in-house China COVID lockdown scale rising to 12.2% of China's full GDP from 9.5% past Monday," Nomura wrote successful a enactment connected Monday.

Zhengzhou, superior of cardinal Henan state and a large accumulation basal for Apple (AAPL.O) supplier Foxconn (2317.TW), reported 733 caller section cases for Nov. 7, much than doubling from a time earlier.

In the southwest metropolis of Chongqing, the metropolis reported 281 caller section cases, besides much than doubling from 120 a time earlier.

In the coal-producing portion of Inner Mongolia, the metropolis of Hohhot reported 1,760 caller section cases for Nov. 7, up from 1,013 a time earlier.

Reporting by Ryan Woo, Bernard Orr, Liz Lee and Jing Wang; Additional reporting by Josh Ye successful Hong Kong and Tom Westbrook successful Singapore; Editing by Raju Gopalakrishnan, Stephen Coates and Raissa Kasolowsky

Our Standards: The Thomson Reuters Trust Principles.

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