China

Chinese Firms Halt Production in Zhejiang Amid Covid Outbreak

 

More than a dozen Chinese listed companies have suspended production in coronavirus-hit parts of China’s eastern Zhejiang province in response to local government’s Covid-19 curbs.

Zhejiang reported a total of 173 locally transmitted cases with confirmed symptoms during the December 6-12 period, official numbers showed on Monday, marking the province’s first domestic cluster outbreak this year.

In October, the province reported just one local case.

The companies that announced the production suspension through exchange filings over the weekend include Ningbo Homelink Eco-Itech, Zhejiang Zhongxin Fluoride Materials, Zhejiang Jingsheng Mechanical & Electrical and Zhejiang Fenglong Electric.

Their shares fell sharply in early trading on Monday.

Zhejiang Chunhui Intelligent Control and Zhejiang Yankon Group suffered the biggest losses, with their shares falling more than 7% each.

China reported 80 new locally-transmitted cases with symptoms on the mainland for December 12, including 74 identified in Zhejiang.

Ningbo Homelink, which makes plastic products, said in an exchange filing late on Sunday that it had halted production in its home city Ningbo at the request of local authorities, and is taking measures to minimise the negative impact on its business.

Zhejiang Jindun Fans Co, a Chinese maker of ventilation system equipment, said on Sunday that production at its subsidiary in Zhejiang’s Shaoxing city had been suspended due to local government’s anti-virus measures.

The company said there would be some delay in product deliveries and a hit to business this month, but that the fallout on this year’s annual results would be limited.

All the companies that announced production halt vowed to fully cooperate with the local government, which will decide when production can be resumed.

 

  • Reuters with additional editing by Jim Pollard

 

 

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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

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