# Shanghai finds cases after five days of ‘zero COVID’ but end of lockdown on track
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-05-20
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Shanghai COVID-19 cases prompt stricter curbs
Meta Description: Shanghai found three new COVID cases, despite strict measures, but still plans to ease city-wide lockdown by June 1. Latest updates on reopening and testing.
URL: https://financedigest.com/shanghai-finds-cases-after-five-days-of-zero-covid-but-end-of-lockdown-on-trackhtml

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By Brenda Goh

SHANGHAI/BEIJING (Reuters) -Shanghai announced its first new COVID-19 cases outside quarantined areas in five days on Friday, triggering stricter curbs and mass testing in one district but plans to end a prolonged city-wide lockdown on June 1 appeared on track.

The commercial hub of 25 million found three new cases in the same family in Qingpu district. All had taken three doses of vaccine and their [infections were discovered during regular testing](https://www.financedigest.com/the-global-self-urinary-infection-testing-market-will-witness-a-7-8-growth-by-end-of-2031-says-fmi.html "The Global Self-urinary Infection Testing Market will witness a 7.8% growth by end of 2031- says FMI"), authorities said.

The three had not left their district town over the past 14 days but had [visited at least four places](https://www.financedigest.com/the-safest-places-to-visit-in-mexico.html "The Safest Places to Visit in Mexico"), including a supermarket, all of which were sealed off and were being disinfected, authorities said.

The area’s more than 200,000 [people had been re-tested and all results](https://www.financedigest.com/uk-pm-sunak-election-results-show-people-want-us-to-deliver-for-them.html "UK PM Sunak: Election results show people want us to deliver for them") were negative.

Our district will follow the precise prevention and control measures, do a good [job in epidemic prevention and control and achieve dynamic clearing as soon](https://www.financedigest.com/meta-plans-to-cut-thousands-of-jobs-as-soon-as-this-week-bloomberg-news.html "Meta plans to cut thousands of jobs as soon as this week – Bloomberg News") as possible,” Zhang Yan, deputy head of Qingpu district, told an online news conference.

Other officials said steps in the gradual re-opening of Shanghai were going ahead, with suburban parks due to open from Sunday. Other parks could [open from June if they met certain conditions but leisure facilities in parks would remain closed](https://www.financedigest.com/andalucian-open-returns-to-costa-del-golf-as-golfers-go-in-search-of-the-perfect-pad-close-to-the-fairway.html "Andalucian Open returns to ‘Costa del Golf’ as golfers go in search of the perfect pad close to the fairway").

A [plan to reopen four metro lines](https://www.financedigest.com/birmingham-lines-up-post-brexit-housing-plan-with-a-little-help-from-its-friends-in-china.html "Birmingham lines up post-Brexit housing plan, with a little help from its friends in China") from Sunday also remained on track, the city government said.

Shanghai has been allowing more people to leave their [homes in recent days](https://www.financedigest.com/man-charged-under-britains-treason-act-over-christmas-day-incident-at-queens-home.html "Man charged under Britain’s Treason Act over Christmas Day incident at queen’s home"), with many residential compounds issuing a limited number of passes for brief walks or trips to the supermarket. Still, most people remained stuck indoors, relying on delivery apps for their [shopping and government](https://www.financedigest.com/carrefour-unveils-30-euro-shopping-basket-in-spain-after-government-price-cut-proposal.html "Carrefour unveils 30 euro shopping basket in Spain after government price cut proposal") rations.

The almost complete shutdown of Shanghai and strict [measures in other cities are the result of a national](https://www.financedigest.com/national-cinemedia-releases-first-cinema-attention-measurement-study-conducted-by-lumen-in-collaboration-with-dentsu.html "National CineMedia releases first cinema attention measurement study, conducted by Lumen in collaboration with dentsu") “zero-COVID” policy to end all outbreaks as soon as they occur, in contrast with the resumption of normal life in the rest of the world.

Beijing, home to 22 million people, reported 62 new [COVID infections](https://www.financedigest.com/british-covid-trial-deliberately-infecting-young-adults-found-to-be-safe.html "British COVID trial deliberately infecting young adults found to be safe") for May 19, up from 55 a day earlier.

[China’s capital has struggled to end](https://www.financedigest.com/european-shares-end-higher-on-china-recovery-optimism.html "European shares end higher on China recovery optimism") an outbreak since late April despite significant curbs on movement, with many residents working from home and a range of shops and venues closed.

But Beijing’s [daily caseload has remained in the dozens rather than exploding like Shanghai’s](https://www.financedigest.com/shanghai-expands-covid-lockdown-as-new-daily-cases-surge-by-a-third.html "Shanghai expands COVID lockdown as new daily cases surge by a third") outbreak did.

‘NEW NORMAL’

On Friday, Shanghai reported a broad economic decline in April, with many [factories shut and workers](https://www.financedigest.com/volkswagens-mexico-factory-workers-reject-union-pay-deal.html "Volkswagen’s Mexico factory workers reject union pay deal") and consumers stuck at home. The city’s industrial [output shrank](https://www.financedigest.com/japans-economy-likely-shrank-in-q3-on-weak-consumption-output-reuters-poll.html "Japan’s economy likely shrank in Q3 on weak consumption, output – Reuters poll") 61.5% from last year, the biggest monthly decline since 2011.

[Retail sales](https://www.financedigest.com/valentines-day-spending-boosts-british-retail-sales-in-february-brc.html "Valentine’s Day spending boosts British retail sales in February – BRC") dived 48.3%, significantly steeper than the 11.1% drop nationally, and property sales by floor area sank 88%, according to a Reuters calculation.

The European Chamber of Commerce in China warned this week that many companies and individuals were “seriously considering their China presence”, even though this month, the [COVID situation in Shanghai and more broadly in China](https://www.financedigest.com/who-urges-china-to-share-specific-data-regularly-on-covid-situation.html "WHO urges China to share specific data regularly on COVID situation") has been improving.

Analysts at Gravekal Dragonomics estimate [fewer than 5% of Chinese cities are now reporting](https://www.financedigest.com/scotland-reports-fewer-covid-19-hospitalizations-with-omicron.html "Scotland reports fewer COVID-19 hospitalizations with Omicron") infections, down from a quarter in late March.

To keep the virus at bay, many [cities have set](https://www.financedigest.com/uks-most-liveable-city-manchester-sets-its-sights-on-the-world-from-tourists-to-property-investors.html "UK’s most liveable city, Manchester sets its sights on the world, from tourists to property investors") up municipal border controls, conduct frequent mass testing and monitor and isolate new infections, including through building lockdowns.

This new normal should allow manufacturing [supply chains](https://www.financedigest.com/mercedes-benz-and-microsoft-collaborate-on-supply-chain-data-platform.html "Mercedes-Benz and Microsoft collaborate on supply chain data platform") to gradually resume normal operation, but will continue to weigh on consumption, the services sector and small business,” Gavekal analysts wrote in a note.

[RATE CUT](https://www.financedigest.com/ecb-raises-interest-rates-again-cuts-bank-subsidies.html "ECB raises interest rates again, cuts bank subsidies")

There have been [signs of the economy responding positively to the looser controls in May after the April contraction](https://www.financedigest.com/axion-swiss-bank-and-avaloq-sign-long-term-contract-for-bpo-services.html "Axion Swiss Bank and Avaloq sign long-term contract for BPO services").

Daily [container throughput at Shanghai ports](https://www.financedigest.com/factbox-what-impact-will-strike-at-britains-busiest-container-port-have.html "Factbox-What impact will strike at Britain’s busiest container port have?") has almost completely recovered to levels seen last year, while air cargo throughput and freight vehicle traffic have bounced to about two thirds of 2021 volumes.

While still down 21% from last year, retail car [sales jumped](https://www.financedigest.com/indias-tata-motors-jumps-to-a-7-month-high-on-strong-q4-jlr-sales.html "India’s Tata Motors jumps to a 7-month high on strong Q4 JLR sales") 27% in the first half of May from the same period in April, data showed this week.

China’s yuan looked [set for its biggest weekly gain](https://www.financedigest.com/londons-ftse-100-edges-higher-set-for-fourth-weekly-gain.html "London’s FTSE 100 edges higher, set for fourth weekly gain") in a year, snapping six straight weeks of losses. [Stocks](https://www.financedigest.com/mutual-funds-vs-stocks-which-is-better.html "Stocks") also rose.

Policymakers have promised more fiscal and monetary stimulus to help the economy.

[China cut](https://www.financedigest.com/lighting-maker-signify-cuts-2022-outlook-again-on-china-business-lighting.html "Lighting maker Signify cuts 2022 outlook again on China, business lighting") its benchmark reference rate for mortgages by a bigger-than-expected margin at its May fixing on Friday, a second reduction this year, as the government is keen to revive credit demand.

Property and related industries such as construction [account for more than a quarter of the economy](https://www.financedigest.com/the-sharing-economy-whats-in-it-for-accountants.html "THE SHARING ECONOMY: WHAT’S IN IT FOR ACCOUNTANTS?") and were in a downturn even before the lockdowns. A campaign by the authorities to reduce high debt became a liquidity crisis last year for some major developers, resulting in bond defaults and projects being put on hold, unsettling global [financial markets](https://www.financedigest.com/the-political-wildcard-what-is-trumps-us-presidential-nomination-doing-to-financial-markets.html "The political wildcard: What is Trump’s US presidential nomination doing to financial markets?").

Xing Zhaopeng, senior China strategist at ANZ, predicted further easing, saying: “Policymakers might have [reached a consensus](https://www.financedigest.com/china-pacific-islands-unable-to-reach-consensus-on-regional-pact.html "China, Pacific islands unable to reach consensus on regional pact") on whether to revive the property sector.

(Reporting by Brenda Goh, Yifan Wang and the [Beijing and Shanghai](https://www.financedigest.com/tesla-stutters-under-tighter-shanghai-lockdown-beijing-keeps-hunting-covid.html "Tesla stutters under tighter Shanghai lockdown; Beijing keeps hunting COVID") bureaus; Writing by Marius Zaharia; Editing by Himani Sarkar, Robert Birsel)


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