Shanghai COVID new cases: 23,342

China’s largest Covid-19 outbreak continues to spread despite an extended lockdown of Shanghai’s 26 million people, concerning investors with regard to economic growth and strained global supply chains.

There were 26,087 new daily infections reported in the Chinese financial hub Sunday, an all-time high while April 11 reports a similar load of 23,342. Shanghai reported 22,348 new asymptomatic coronavirus cases and 994 symptomatic cases for April 11, the local government said on Tuesday. Asymptomatic cases were down from 25,173 a day earlier. The symptomatic cases rose from 914.

Residents have been locked down for weeks now, with frustration building among the population as they struggle to get access to food and medical care. 

Elsewhere, the southern metropolis of Guangzhou is looking at implementing a series of restrictions after local authorities warned the 20 cases they found last week could be the tip of the iceberg. ''The city is a trading hub and infections and similar containment measures across China are an increasing drag on the world’s second-largest economy, with consequences for global growth, supply chains and inflation,'' Bloomberg reported. 

''Economists now predict the economy will expand 5% this year, below the official target of around 5.5%. Analysts at Morgan Stanley have cut their growth forecasts this year on the lockdown impact, while Citigroup Inc. has warned of risks to growth in the current quarter.''

Market implications

Chinese stocks are likely to remain under pressure this week, getting off to a bad start on Monay when they plunged over the rising global interest rates and persistent regulatory headwinds. The Hang Seng Index declined 3% Monday in Hong Kong, as did China’s benchmark CSI 300 Index.