iPhone Manufacturing In Focus As China Orders Lockdown At Key Hub

Author: Bhavik Nair | October 17, 2022 04:09am

The Chinese city of Zhengzhou, which is the manufacturing hub of Apple Inc.’s (NASDAQ:AAPL) iPhones, has reportedly locked down one of its most-populated districts to control a virus flare-up.

What Happened: About 1 million residents of Zhongyuan district were asked to stay at home beginning Monday, except for when they need to undergo COVID testing, while non-essential businesses have also been shut, reported Bloomberg citing a government notice.

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The city reported six new local cases on Sunday, lower than a recent peak of 40 on Oct. 9, said the report.

While China’s most important cities have so far avoided large-scale lockdowns, officials have been quietly stopping a growing list of activities, the report said.

Many schools in Shanghai have suspended in-person classes over fears of the infection spreading, according to parents and social media posts, the report said. Last week, Tianjin announced a lockdown of one district while Guangzhou shut schools in one area.

Scenes of a rare protest against Chinese President Xi Jinping’s communist government in Beijing were shared across social media on Thursday. “Say no to Covid test, yes to food. No to lockdown, yes to freedom. No to lies, yes to dignity. No to cultural revolution, yes to reform. No to great leader, yes to vote. Don't be a slave, be a citizen,” a banner read.

Price Action: The Global X MSCI China Financials ETF (NYSE:CHIX) has lost over 22% since the beginning of the year while the SPDR S&P China ETF (NYSE:GXC) has shed over 30% in the same period.

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