Shares in China fell on Monday after protests against the government’s harsh Covid-19 policies weighed on market sentiment and added to uncertainty about the outlook of the world’s second-largest economy.
In Hong Kong, the Hang Seng China Enterprises index dropped as much as 4.5 per cent before pulling back to shed 1.5 per cent. The decline on China’s CSI 300 index of Shanghai- and Shenzhen-listed shares was as great as 2.8 per cent before it was trimmed to about 1.1 per cent.
Demonstrations broke out in Beijing, Shanghai and other cities over the weekend against harsh pandemic restrictions. Discontent has surged since a fire in the city of Urumqi killed 10 people on Thursday, prompting vigils across China as authorities denied allegations that coronavirus restrictions had hampered rescue efforts and prevented residents from escaping the blaze.