The fallout of China’s zero-Covid policy is starting to show in Shanghai’s financial markets, with the city losing its top currency trading hub title for the first time, reports the South China Morning Post.
Shanghai handled fewer currency deals than Beijing in April, to rank second among China’s 36 provinces and municipalities, according to the State Administration of Foreign Exchange (SAFE). The decline points to another consequence of strict lockdowns and may serve as a case study for the possible implications of movement curbs in major Chinese cities, including Beijing, as Covid-19 cases climb.
Traders volunteering to stay in the office, sleeping on trading floors, did little keep up currency volumes. Settlement and sales by banks for their clients, dropped 30% from March to $61.8 billion. That’s 15% of the national tally, compared with a steady share of around 20% before the lockdown, as per data going back to 2019.