Beijing’s COVID zero-tolerance policy under Omicron assault

Goldman Sachs with the note:

The number of Covid cases in China jumped in late December, with Shaanxi province the new epicenter. Although China has not yet reported any local infections linked to Omicron, markets have been increasingly concerned about the potential impact if the highly transmissible variant enters China and leads to further restrictions. In this note, we discuss the likely Covid policy response by Beijing and the potential impact on growth under different scenarios.

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