Chinese Business

Markets rose Wednesday on hopes that China will further ease its strict Covid containment measures following widespread protests, though gains were tempered by leaders’ warnings of a crackdown on dissent.

Traders were also nervously awaiting a key policy speech by Federal Reserve chief Jerome Powell later in the day that could outline the bank’s strategy for tackling inflation in light of a recent slowdown in price gains.

A spectacular rally in Hong Kong on Tuesday led gains across Asia as investors looked past weekend demonstrations in China after officials announced moves aimed at softening the zero-Covid strategy.

The government said it would step up a drive to vaccinate the elderly, while the National Health Commission appeared to blame local governments for instituting extreme measures such as tight lockdowns, one of the main reasons for the unrest.

However, in a sign that the leadership was determined to maintain its authority, the country’s top security body called for a “crackdown” against “hostile forces”.

The warning came after security services were sent out to prevent further demonstrations, the likes of which had not been seen in decades.

The developments saw Hong Kong stocks extend Tuesday’s more than five percent surge, while Shanghai built on its own healthy gains.

Data showing China’s factory activity shrank further in November underscored the impact the zero-Covid approach has had on the country’s economy. 

“Due to a more reflective approach to the recent zero-Covid measures, Chinese stocks have taken substantial leaps and bounds this week,” said SPI Asset Management’s Stephen Innes.

“Still, the global investment community is keeping close tabs on China… Any antagonistic escalation risks a walk back of current positive momentum, especially with folks playing the trade-off thinking that a calming in protests might hasten a shift away from zero-Covid policies.”

There were also gains in most other Asian markets, with Sydney, Seoul, Mumbai, Singapore, Bangkok, Wellington, Taipei and Jakarta in the green, though Tokyo dipped.

London, Paris and Frankfurt all opened higher.

Focus is also on Fed boss Powell’s speech later Wednesday on the labour market, with many expecting him to outline the bank’s plans for future interest rate hikes.

After lifting borrowing costs 75 basis points for the past four meetings, officials are widely expected to take their foot off the gas when they gather next month following a recent batch of weak data, including a below-forecast inflation print for October.

But a string of policymakers has lined up in recent weeks to ram home their intention to keep lifting until they are satisfied inflation has been slayed, with warnings there will not likely be any cuts until 2024.

The sharp lift in rates this year has fanned bets that the world’s top economy will tip into recession.

“The Fed has hiked enough — and quickly enough — to make recession a base-case scenario in our book,” said Lauren Goodwin, at New York Life Investments.

“Volatility and risk premia are likely to remain elevated as long as the Fed is fighting inflation in a growth slowdown.”

The remarks by Powell come just before the Friday release of US jobs data for November, which will provide the latest snapshot of the economy.

– Key figures around 0820 GMT –

Tokyo – Nikkei 225: DOWN 0.2 percent at 27,968.99 (close)

Hong Kong – Hang Seng Index: UP 2.2 percent at 18,597.23 (close)

Shanghai – Composite: UP 0.1 percent at 3,151.34 (close)

London – FTSE 100: UP 0.5 percent at 7,548.18

Euro/dollar: UP at $1.0353 from $1.0332 on Tuesday

Dollar/yen: DOWN at 138.63 yen from 138.67 yen

Pound/dollar: UP at $1.1973 from $1.1952

Euro/pound: UP at 86.47 pence from 86.42 pence

West Texas Intermediate: UP 0.9 percent at $78.90 per barrel

Brent North Sea crude: UP 1.3 percent at $84.13 per barrel

New York – Dow: FLAT at 33,852.53 (close)

China’s factory activity shrank for a second straight month in November, official data showed Wednesday, as large swathes of the country were hit by Covid-19 lockdowns and transport disruptions.

The Purchasing Managers’ Index (PMI) — a key gauge of manufacturing in the world’s second-biggest economy — came in at 48.0, down from October’s 49.2 and well below the 50-point mark separating growth from contraction, according to data from the National Bureau of Statistics (NBS).

China is the last major economy welded to a zero-Covid strategy of eliminating outbreaks with strict quarantines and mass testing even as infections reached record highs this month, dragging down demand and business confidence.

“In November, impacted by multiple factors including the wide and frequent spread of domestic outbreaks, and the international environment becoming more complex and severe, China’s purchasing managers’ index fell,” NBS senior statistician Zhao Qinghe said in a statement.

November’s figure was lower than the 49.0 reading predicted by Bloomberg analysts.

The manufacturing PMI has been in contraction territory for all but four months of the year so far, as a summer of heat waves was bookended by Covid lockdowns in major cities during the spring and autumn.

Zhao said domestic outbreaks in November caused “production activity to slow down and product orders to fall”, noting “increased fluctuation in market expectations”.

Activity fell at businesses of all sizes during the month, with the PMI for small enterprises hit hardest at 45.6.

The non-manufacturing PMI came in at 46.7 points in November, also reflecting a contraction in activity and down from 48.7 points in October.

Zhao said that for transport, accommodation, catering and entertainment in particular “the total industry business volume fell significantly”, as “some regions saw a relatively large impact from the pandemic”.

Chinese leaders have set an annual economic growth target of about 5.5 percent, but many observers think the country will struggle to hit it, despite announcing a better-than-expected 3.9 percent expansion in the third quarter.

Meanwhile, rare nationwide protests have erupted among a population exhausted by almost three years of zero-Covid, while authorities have offered mixed messages on transitioning away from the strategy.

“The virus situation continues to cloud the economic outlook,” Sheana Yue, China economist at Capital Economics said in a note on Wednesday.

“Most cities have taken to implementing localised lockdowns, similar to the ones we saw in April, which will continue to weigh heavily on services activity,” Yue said.

She warned, “there is little upside that might offset the weakness,” with a global downturn putting pressure on export-focused businesses in China.

Markets mostly rose Wednesday on hopes that China will further ease its strict Covid containment measures following widespread political unrest, though gains were tempered by leaders’ warnings of a crackdown on dissent across the country.

Traders were also nervously awaiting a key policy speech by Federal Reserve chief Jerome Powell later in the day that could outline the bank’s strategy for tackling inflation in light of a recent slowdown in price gains.

A spectacular rally in Hong Kong on Tuesday led gains across Asia as investors looked past weekend demonstrations in China after officials announced moves aimed at softening their zero-Covid strategy.

Leaders said they would step up their drive to vaccinate the elderly, while the National Health Commission appeared to blame local governments for instituting extreme measures such as tight lockdowns, one of the main reasons for the unrest.

However, in a sign that the leadership was determined to maintain its authority, the country’s top security body called for a “crackdown” against “hostile forces”.

The warning came after security services were sent out in force to prevent further demonstrations, the likes of which had not been seen in decades.

The developments saw Hong Kong stocks swing between gains and losses in the morning, having soared more than five percent Tuesday, while Shanghai fluctuated.

Data showing China’s factory activity shrank further in November highlighted Covid-zero’s impact on the country’s economy. 

“Due to a more reflective approach to the recent zero-Covid measures, Chinese stocks have taken substantial leaps and bounds this week,” said SPI Asset Management’s Stephen Innes.

“Still, the global investment community is keeping close tabs on China… Any antagonistic escalation risks a walk back of current positive momentum, especially with folks playing the trade-off thinking that a calming in protests might hasten a shift away from zero-Covid policies.”

There were also gains in most other Asian markets, with Sydney, Seoul, Wellington, Taipei and Jakarta in the green, though Tokyo dipped.

Focus is also on Fed boss Powell’s speech later Wednesday on the labour market, with many expecting him to outline the bank’s plans for future interest rate hikes.

After lifting borrowing costs 75 basis points for the past four meetings, officials are widely seen as taking their foot off the gas when they gather next month following a recent batch of weak data including a below-forecast inflation print for October

But a string of policymakers has lined up in recent weeks to ram home their intention to keep lifting until they are satisfied inflation has been slayed, with warnings there will not likely be any cuts until 2024.

The sharp lift in rates this year has fanned bets that the world’s top economy will tip into recession.

“The Fed has hiked enough — and quickly enough — to make recession a base-case scenario in our book,” Lauren Goodwin, at New York Life Investments, said. 

“Volatility and risk premia are likely to remain elevated as long as the Fed is fighting inflation in a growth slowdown.”

The remarks by Powell come just before the Friday release of US jobs data for November, which will provide the latest snapshot of the economy.

– Key figures around 0230 GMT –

Tokyo – Nikkei 225: DOWN 0.6 percent at 27,858.16 (break)

Hong Kong – Hang Seng Index: UP 0.3 percent at 18,251.79

Shanghai – Composite: UP 0.1 percent at 3,153.65

Euro/dollar: UP at $1.0346 from $1.0332 on Tuesday

Dollar/yen: UP at 138.69 yen from 138.67 yen

Pound/dollar: UP at $1.1977 from $1.1952

Euro/pound: DOWN at 86.38 pence from 86.42 pence

West Texas Intermediate: UP 0.8 percent at $78.81 per barrel

Brent North Sea crude: UP 1.0 percent at $83.88 per barrel

New York – Dow: FLAT at 33,852.53 (close)

London – FTSE 100: UP 0.5 percent at 7,512.00 (close)

Alibaba founder Jack Ma has been living in Tokyo for almost six months after disappearing from public view following China’s crackdown on the tech sector, the Financial Times reported Wednesday, citing multiple unnamed sources.

The billionaire has kept a low profile since the crackdown, which has included Chinese regulators scrapping the IPO of Ma’s Ant Group and issuing Alibaba with record fines.

But the FT said he has spent much of the past six months with his family in Tokyo and other parts of Japan, along with visits to the United States and Israel.

The British newspaper said Ma has frequented several private members’ clubs in Tokyo, and become an “enthusiastic collector” of Japanese modern art, as well as exploring expanding his business interests into sustainability.

Ma has been spotted elsewhere since he effectively disappeared from public view in China, including on the Spanish island of Mallorca last year.

In recent years, Chinese officials have taken aim at alleged anti-competitive practices by some of the country’s biggest names, driven by fears that major internet firms control too much data and expanded too quickly.

This July, a report said Ma planned to hand over control of Ant Group to appease Chinese regulators and revive the digital payments unit’s initial public offering.

His e-commerce giant Alibaba reported flat revenue growth in August for the first time, as China battled an economic slowdown and resurgent Covid-19 cases.

US authorities have put the company on a watchlist that could see it delisted in New York if it does not comply with disclosure orders, causing its shares to slump.

Stocks diverged Tuesday after big rallies in Asian markets failed to trigger a similar reaction in Europe and on Wall Street, as investors remained cautious before key US data and speeches this week.

Sentiment was boosted in Asia after China avoided another night of protests, following a weekend of unrest sparked by the country’s harsh anti-Covid policies.

The return of some calm helped Hong Kong stocks rally more than five percent and Shanghai more than two percent, with rumbling that the demonstrations could help push leaders to ease some of the strict containment measures. 

But Europe’s main stock markets were mixed at the end of the day’s trading, while two of the three major New York indices retreated.

US investors were in a cautious mood ahead of Wednesday’s appearance by Federal Reserve Chair Jerome Powell.

Powell’s address at the Brookings Institution comes as markets expect the central bank to soon moderate its policy of aggressive interest rate hikes to counter surging inflation.

Investors were “hesitant” Tuesday as they waited to see if Powell would indeed confirm such a shift, said LBBW’s Karl Haeling.

“Markets have a chance to trade higher tomorrow as long as he doesn’t deliver any surprise,” Haeling said.

Consumer confidence in the United States slipped for a second straight month in November, likely due to a rise in gas prices, according to a survey released by the Conference Board.

Meanwhile, the National Retail Federation estimated that 196.7 million Americans shopped in stores and online in the five-day stretch between last Thursday’s Thanksgiving and “Cyber Monday,” a better-than-expected result highlighting the resilience of US consumers despite elevated consumer prices.

In Europe, German inflation unexpectedly slowed in November to 10 percent from a record high of 10.4 percent in October, preliminary data showed Tuesday.

Economists however cautioned against assuming inflation was now on a downhill path as households will likely face higher energy costs from January.

“Investors will need to be made of stern stuff going into the new year,” Danni Hewson, AJ Bell financial analyst, said in a note.

“Volatility has been a hallmark of 2022 and the word looks set to remain an analyst favorite into the New Year and beyond.”

This week’s calendar also includes Friday’s release of key US jobs data, which could influence the central bank’s plans for monetary policy.

– Key figures around 2130 GMT –

New York – Dow: FLAT at 33,852.53 (close)

New York – S&P 500: DOWN 0.2 percent at 3,957.63 (close)

New York – Nasdaq: DOWN 0.6 percent at 10,983.78 (close)

London – FTSE 100: UP 0.5 percent at 7,512.00 (close)

Frankfurt – DAX: DOWN 0.2 percent at 14,355.45 (close)

Paris – CAC 40: UP 0.1 percent at 6,668.97 (close)

EURO STOXX 50: FLAT at 3,934.44 (close)

Tokyo – Nikkei 225: DOWN 0.5 percent at 28,027.84 (close)

Hong Kong – Hang Seng Index: UP 5.2 percent at 18,204.68 (close)

Shanghai – Composite: UP 2.3 percent at 3,149.75 (close)

Brent North Sea crude: DOWN 0.2 percent at $83.03 per barrel

West Texas Intermediate: UP 1.2 percent at $78.20 per barrel

Euro/dollar: DOWN at $1.0332 from $1.0340 on Monday

Dollar/yen: DOWN at 138.67 yen from 138.95 yen

Pound/dollar: DOWN at $1.1952 from $1.1959

Euro/pound: DOWN at 86.42 pence from 86.45 pence

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The International Monetary Fund may have to slash its growth forecasts for China, managing director Kristalina Georgieva warned Tuesday, after protests erupted opposing Beijing’s strict policies to combat Covid.

“There is indeed the possibility that, in this time of very high uncertainty, we might have to revise these projections down,” Georgieva said, referring to the fund’s forecasts for China.

In October, the IMF cut its projection for the world’s number two economy to 3.2 percent this year as it is weighed down by Covid-zero policies, as well as a slowdown in the property sector.

It projected China’s growth would rise to 4.4 percent next year. 

Beijing’s tough approach involves compelling local governments to impose snap lockdowns and quarantine orders, and limit freedom of movement in response to minor outbreaks.

Demonstrations not seen in decades erupted in major cities at the weekend opposing Covid lockdowns and demanding greater political freedoms.

Georgieva, speaking in Berlin after meeting Chancellor Olaf Scholz and heads of other international financial organisations, said China was “looking into its zero-Covid policy with a perspective to shift to more targeted response to Covid cases”.

This was aimed at ensuring “less interruptions to the Chinese economy, and less negative spillover for the rest of the world,” she said.

“We have been supportive of looking into what China can do to make its Covid policy more effective for China itself and for its role in the world economy.”

HSBC has agreed to sell its Canadian division to Royal Bank of Canada for US$10.1 billion, the Asia-focused banking giant announced Tuesday.

The large sale comes after UK-listed HSBC faced calls from biggest shareholder Ping An Insurance Group to cut costs and shift more resources to Asia.

HSBC added in a statement that it would use the funds to invest in its core business and return cash to investors.

“We decided to sell following a thorough review of the business… and concluded that there was a material value upside from selling,” said chief executive Noel Quinn.

The divestment is expected to be completed in late 2023.

“HSBC Canada offers the opportunity to add a complementary business and client base in the market we know best and where we can deliver strong returns and client value,” RBC president and CEO Dave McKay said in a separate statement.

“This also positions us as the bank of choice for commercial clients with international needs, newcomers to Canada and affluent clients who need global banking and wealth management capabilities.”

China’s Ping An has urged HSBC to spin off its Asian operations in a bid to unlock shareholder value amid tensions between Beijing and the West.

Shares rose 4.4 percent to 510.10 pence in late afternoon deals on London’s rising stock market.

“HSBC’s policy for some time has been to pivot toward Asia and the sale of the Canadian business is the latest step in that mix shift,” said AJ Bell investment director Russ Mould.

“Pressure from Ping An could be accelerating the changes, especially if HSBC’s board remains keen to avoid a full break-up.”

Stocks diverged Tuesday after big rallies in Asian markets failed to trigger a similar reaction in Europe and on Wall Street as investors remain cautious before key US data and speeches later in the week.

Sentiment was boosted in Asia after China avoided another night of protests, following a weekend of unrest sparked by the tough anti-Covid policy that is weighing on growth in the world’s second biggest economy.

There were big rallies in Hong Kong and Shanghai, with property firms enjoying a much-needed surge, also on moves to ease funding restrictions on troubled developers.

But sentiment was tempered by warnings from top Federal Reserve policymakers that US interest rates would climb further and could go higher than initially thought to fight decades-high inflation.

Europe’s main stock markets were mixed at the end of the day’s trading as all three main indices on Wall Street slid Tuesday.

London closed up 0.5 percent, boosted by HSBC’s announcement Tuesday that it would sell its Canadian division to Royal Bank of Canada for US$10.1 billion, which led to the bank’s share price rising over four percent.

German inflation also unexpectedly slowed in November to 10 percent from a record high of 10.4 percent in October, preliminary data showed Tuesday.

Economists however cautioned against assuming inflation was now on a downhill path as households will likely face higher energy costs from January.

US consumers appeared equally gloomy about the state of the American economy after a closely watched consumer confidence index dipped to 100.2 in November, down two points from the month before, data showed Tuesday.

“Investors will need to be made of stern stuff going into the new year,” Danni Hewson, AJ Bell financial analyst, said in a note.

“Volatility has been a hallmark of 2022 and the word looks set to remain an analyst favourite into the New Year and beyond.”

– Looking to the Fed –

Market focus is turning to the United States, with a number of Fed officials due to speak, including boss Jerome Powell.

Noting that there has not been “any carryover momentum from the Chinese markets” on Wall Street Tuesday, Patrick J. O’Hare of Briefing.com said it “suggests… market participants are more attuned for the time being to happenings closer to home” including Powell’s speech Wednesday.

“Sure, the latest developments have helped temper some of yesterday’s selling activity, but they have not ignited buying efforts,” he said.

Friday sees the release of key US jobs data, which could provide an idea about the central bank’s plans for monetary policy.

Bets on a slowdown in its pace of rate hikes have boosted markets for the past weeks, but some high-ranking members on Monday looked to play down the chances of a more dovish pivot.

– Key figures around 1700 GMT –

New York – Dow: DOWN 0.3 percent at 33,733.05

EURO STOXX 50: FLAT at 3,934.44

London – FTSE 100: UP 0.5 percent at 7,512.00 (close)

Frankfurt – DAX: DOWN 0.2 percent at 14,355.45 (close)

Paris – CAC 40: FLAT at 6,668.97 (close)

Tokyo – Nikkei 225: DOWN 0.6 percent at 28,027.84 (close)

Hong Kong – Hang Seng Index: UP 5.2 percent at 18,204.68 (close)

Shanghai – Composite: UP 2.3 percent at 3,149.75 (close)

Brent North Sea crude: UP 0.8 percent at $83.87 per barrel

West Texas Intermediate: UP 1.4 percent at $78.34 per barrel

Euro/dollar: DOWN at $1.0345 from $1.0347 on Monday

Dollar/yen: DOWN at 138.45 yen from 138.87 yen

Pound/dollar: UP at $1.1980 from $1.1952

Euro/pound: DOWN at 86.33 pence from 86.50 pence

burs-raz/ah

Stocks and oil prices rebounded strongly Tuesday, while the haven dollar weakened, on speculation that China would further ease strict Covid measures but investors remain cautious ahead of key US data and speeches later in the week.

Sentiment was boosted also after China avoided another night of protests, following a weekend of unrest sparked by the tough anti-Covid policy that is weighing on growth in the world’s second biggest economy.

Stock market gains were led by big rallies in Hong Kong and Shanghai, with property firms enjoying a much-needed surge, also on moves to ease funding restrictions on troubled developers.

Europe’s main stock markets were mainly higher in late afternoon trading.

But sentiment was tempered by warnings from top Federal Reserve policymakers that US interest rates would climb further and could go higher than initially thought to fight decades-high inflation.

US stocks edged lower early Tuesday ahead of key releases on consumer health before the festive shopping season kicks off.

“Risk-on sentiment has lifted European equities, boosted by a rally overnight in China,” noted Victoria Scholar, head of investment at Interactive Investor.

Oil prices rebounded from 11-month lows, “boosted by improved sentiment towards demand from China”, she added.

Qatar announced Tuesday its first major deal to send liquefied natural gas to Germany as Europe scrambles to find alternatives to Russian energy sources.

Qatar’s Energy Minister Saad Sherida al-Kaabi said up to two million tons of gas a year would be sent for at least 15 years from 2026, and that state-run QatarEnergy was discussing other possible deals for Europe’s biggest economy.

German inflation also unexpectedly slowed in November to 10 percent from a record high of 10.4 percent in October, preliminary data showed Tuesday.

Economists however cautioned against assuming inflation was now on a downhill path as households will likely face higher energy costs from January.

Market focus was meanwhile turning to the United States, with a number of Fed officials due to speak, including boss Jerome Powell.

Noting that there has not been “any carryover momentum from the Chinese markets” on Wall Street Tuesday, Patrick J. O’Hare of Briefing.com said it “suggests to us that market participants are more attuned for the time being to happenings closer to home” including Powell’s speech Wednesday.

“Sure, the latest developments have helped temper some of yesterday’s selling activity, but they have not ignited buying efforts,” he added.

Friday sees the release of key US jobs data, which could provide an idea about the central bank’s plans for monetary policy.

Bets on a slowdown in its pace of rate hikes have boosted markets for the past weeks, but some high-ranking members on Monday looked to play down the chances of a more dovish pivot.

– Key figures around 1445 GMT –

London – FTSE 100: UP 0.6 percent at 7,522.52 points

Frankfurt – DAX: DOWN 0.1 percent at 14,361.21

Paris – CAC 40: UP 0.2 percent at 6,678.44

EURO STOXX 50: FLAT at 3,937.97

New York – Dow: DOWN 0.1 percent at 33,801.67

Tokyo – Nikkei 225: DOWN 0.6 percent at 28,027.84 (close)

Hong Kong – Hang Seng Index: UP 5.2 percent at 18,204.68 (close)

Shanghai – Composite: UP 2.3 percent at 3,149.75 (close)

Brent North Sea crude: UP 2.7 percent at $85.48 per barrel

West Texas Intermediate: UP 2.4 percent at $79.07 per barrel

Euro/dollar: DOWN at $1.0344 from $1.0347 on Monday

Dollar/yen: DOWN at 138.70 yen from 138.87 yen

Pound/dollar: UP at $1.1968 from $1.1952

Euro/pound: DOWN at 86.44 pence from 86.50 pence

China’s top security body called for a “crackdown” against “hostile forces” on Tuesday, after a weekend of protests in major cities opposing Covid lockdowns and demanding greater political freedoms.

The stark warning came after security services were out in force across China following demonstrations not seen in decades, as anger over unrelenting lockdowns fuelled deep-rooted frustration with the political system.

A deadly fire last week in Urumqi, the capital of the northwestern region of Xinjiang, was the catalyst for the outrage, with protesters taking to the streets in cities around China. 

The demonstrators said Covid-19 restrictions were to blame for hampering rescue efforts in Urumqi, claims the government swiftly denied.

China is the world’s last major economy still wedded to a zero-Covid policy, which compels local governments to impose snap lockdowns and quarantine orders, and limit freedom of movement in response to minor outbreaks.

Anger over the lockdowns has widened to calls for political change, with protesters holding up blank sheets of paper to symbolise the pervasive censorship to which the world’s most populous country is subjected.

On Tuesday, the ruling Communist Party’s Central Political and Legal Affairs Commission called for a “crackdown” on what it described as “hostile forces” — a possible warning to the protesters, which the readout published in state news agency Xinhua did not mention directly.

The body —  which oversees all domestic law enforcement in China — also agreed at its meeting that it was time to “crack down on illegal criminal acts that disrupt social order” as well as “safeguard overall social stability.”

The warning came after a heavy police presence across cities on Monday and Tuesday appeared to have quelled protests for the time being.

In another sign of the government’s zero-tolerance of dissent, people who had attended weekend rallies in the Chinese capital told AFP on Monday they had received phone calls from law enforcement officers demanding information about their movements.

– ‘Liberty or death’ –

On Tuesday hundreds of officers appeared to have been drawn back from the streets of a rain-drenched Shanghai, where weekend protests had seen bold calls for the resignation of President Xi Jinping, an AFP reporter said.

A broad effort by police to stop passersby taking pictures of the site of the protest also appeared to have been tapered down, the reporter added, with one officer telling AFP that it “depends on the nature of the photo” but that there was no blanket ban in place.

In Beijing, AFP reporters saw a few marked and unmarked police vehicles but no sign of protesters at an intersection near the Asian Games Village, where a demonstration had been planned for Tuesday night. 

Freezing temperatures of minus nine degrees Celsius (15.8 degrees Fahrenheit) likely also kept protesters away.

Some rallies did go ahead elsewhere on Monday and Tuesday, however. 

At Hong Kong’s oldest university, over a dozen people led the crowd Tuesday in chanting slogans such as “give me liberty or give me death”. 

“We are not foreign forces, we are Chinese citizens. China should have different voices,” one woman shouted, while another held a placard mourning victims of the Urumqi fire. 

In Hangzhou, just over 170 kilometres (105 miles) southwest of Shanghai, there was heavy security and sporadic protests in the city’s downtown on Monday night. 

“The atmosphere was disorderly. There were few people and we were separated. There were lots of police, it was chaos,” she said.

– ‘Many died in vain’ –

China’s strict control of information and continued travel curbs have made verifying protester numbers across the vast country challenging.

But the widespread rallies seen over the weekend are exceptionally rare in China, with authorities harshly clamping down on all opposition to the central government.

US President Joe Biden is monitoring the unrest, the White House said Monday.

US Secretary of State Antony Blinken said Tuesday that Washington’s position was “the same everywhere”, and that was to “support the right of people everywhere, to peacefully protest to make known their views, their concerns, and their frustrations”.

Solidarity protests have meanwhile mushroomed around the world.

“Officials are borrowing the pretext of Covid, but using excessively strict lockdowns to control China’s population,” said one 21-year-old Chinese protester in Washington, who gave only his surname, Chen.

“They disregarded human lives and caused many to die in vain,” he told AFP.

– Vaccination drive –

While China’s leaders are committed to zero-Covid, there have been some signs that central authorities may be seeking a path out of the rigid policy.

China’s National Health Commission (NHC) announced on Tuesday a renewed effort to expand low vaccination rates among the elderly — long seen as a key obstacle to relaxing the measures.

Many fear that opening the country up while swaths of the population remain not fully immunised could overwhelm China’s healthcare system and cause more than a million deaths.

Just 65.8 percent of people over 80 are fully vaccinated, NHC officials told a news conference.

China has also not yet approved mRNA vaccines, which are proven to be more effective, for public use.

The NHC also said local efforts “inconsistent with national policies” had caused a “great impact on people’s work and life”, and warned that “those who cause serious consequences will be held accountable in accordance with laws and regulation”.

However, it did not suggest a change in policy was imminent.

bur-bys-hol-reb/oho/ser