News Analysis
China’s Shenzhen Stock Exchange (SZSE) and Shanghai Stock Exchange (SSE) slumped on June 29 following Chinese leader Xi Jinping’s speech in Wuhan. He stressed the need to strictly enforce the “zero-COVID” policy and warned against “herd immunity” in dealing with the pandemic.
Xi delivered the speech in the early afternoon of Tuesday in Wuhan city, ground zero of the COVID-19 pandemic. Almost immediately, investor confidence seemed to have dropped as the SZSE and SSE reacted accordingly to Xi’s remarks on enforcing the strict COVID policy. The SZSE shed 286 points or 2.2 percent. The SSE fell 1.4 percent. Hong Kong’s Hang Seng Index was also affected, dropping 1.88 percent….