The rout in Chinese stocks deepened as the country’s escalating battle with Covid-19 rattled a market already contending with potential U.S. delistings, domestic regulatory pressure and the global economic consequences of the war in Ukraine.
After a recent surge in coronavirus infections, authorities have imposed restrictions on cities including Shenzhen, the southern financial and technology hub where companies such as Huawei Technologies are based.
On Monday, Hong Kong’s flagship
Index fell 5% to register its lowest close since March 2016, while the Hang Seng Tech Index retreated 11%—the benchmark’s biggest one-day percentage decline since it was introduced in July 2020. Stocks in Chinese consumer-facing companies dropped sharply, with major decliners including brewers, property developers, restaurant chains, casino operators and…
