Some companies suspend production in Zhejiang, as China's Covid-19 cases rise

Companies announced the production suspension through exchange filings over the weekend. PHOTO: REUTERS

SHANGHAI (REUTERS) - More than a dozen Chinese-listed companies have said they had 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 Dec 6 to 12 period, official numbers showed on Monday (Dec 13), 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 and 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 per cent each.

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, 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 a halt to production vowed to fully cooperate with the local government, which will decide when production can be resumed.

China reported 101 new confirmed coronavirus cases for Dec 12, compared with 75 a day earlier, its health authority said on Monday.

Of the new infections, 80 were locally transmitted, according to a statement by the National Health Commission, compared with 49 a day earlier.

The new local cases were reported by the authorities in the provinces of Zhejiang and Shaanxi and the northern Chinese region of Inner Mongolia.

China reported 17 new asymptomatic cases, which it classifies separately from confirmed cases, compared with 20 a day earlier.

There were no new deaths, leaving the death toll unchanged at 4,636.

As at Dec 12, mainland China has 99,780 confirmed cases.

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