Coronavirus: China seeks ‘societal zero Covid’ with rounds of testing


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Shanghai city authorities will start rounds of coronavirus testing over the next few days to determine which neighbourhoods can safely be allowed a limited amount of freedom of movement, as residents in Beijing wait to find out whether the capital city will go into lockdown.

On Wednesday, China reported 14,222 new cases, the vast majority of which were asymptomatic. The country is facing its largest outbreak since the pandemic was first reported in Wuhan in late December 2019.

The vice head of Shanghai’s health committee, Zhao Dandan, announced on Wednesday that the city would begin another round of testing for residents over the next few days to determine which districts were lower risk. Areas declared to have achieved “societal zero Covid” could see some measure of limited freedom.

The phrase, used by Chinese health authorities, refers to when new positive cases are only discovered in people who are already under surveillance, such as in centralised quarantine, or those considered to be close contacts. At this point, they are considered to have broken off chains of transmission at the community level.

Shanghai’s total lockdown has been in place for nearly a month, taking a toll on residents who have been confined to their homes. While a small number of people have been allowed to leave their homes in the past week, the vast majority remain confined.

Officials reported 48 deaths on Wednesday, bringing the total to at least 238 in the city.

Meanwhile, the capital Beijing is testing millions of residents after cases were discovered at the weekend. The city reported 34 new cases on Wednesday, three of which were asymptomatic.

In the last couple of days nervous Beijing residents have started stockpiling food and supplies following troubles in Shanghai, where residents struggled to get a continuous and reliable supply of food while under lockdown.

Beijing city officials were quick to promise that they were ensuring grocery stores would be well stocked. They said they were monitoring the Xinfadi wholesale market, where the city gets the vast majority of its supplies, at a press conference on Tuesday night.

It is not known whether the entire city will be forced into lockdown. For now, officials have locked down only specific areas where positive cases have been found. On Wednesday, Beijing’s Tongzhou district suspended classes at all its schools, from kindergarten through to high school.

Given that China for now remains committed to its zero-tolerance approach, “I do think we will continue to see the use of these lockdowns across the country,” said Karen Grepin, a public health expert at the University of Hong Kong. “If anything, the Omicron variant has made it more challenging to control the virus and thus more stringent measures are needed if the goal is to continue to strive for local elimination.”

The “zero-Covid” strategy has worked well against previous versions of the virus, ensuring that for most of the past two years, people in China have been able to live a mostly virus-free life.

Mexico says Covid-19 is now endemic

The Mexican government said that Covid-19 has passed from a pandemic to an endemic stage in Mexico, meaning authorities will treat it as a seasonally recurring disease.

Mexico never enforced face mask requirements, and the few partial shutdowns of businesses and activities were lifted weeks ago.

“It is now retreating almost completely,” said President Andrés Manuel López Obrador.

A nurse from the Mexican Social Security Institute prepares a dose of AstraZeneca's Covid-19 vaccine during a campaign to reach out to people in low-income neighbourhoods, in Guadalajara. AFP
A nurse from the Mexican Social Security Institute prepares a dose of AstraZeneca's Covid-19 vaccine during a campaign to reach out to people in low-income neighbourhoods, in Guadalajara. AFP

New case numbers have declined. But that may be because Mexico, which never did much testing, is now offering even fewer tests.

The daily death rate has also dropped sharply.

Mexico has recorded almost 325,000 test-confirmed deaths, but government reviews of death certificates suggest the real toll is nearer 490,000.

About 90 per cent of adult Mexicans have received at least one dose of the coronavirus vaccine.

India’s Modi meets heads of state

India’s Prime Minister Narendra Modi called for a meeting with state chief ministers on Wednesday to review preparedness against another wave of Covid-19 infections as daily cases touched a six-week high.

The South Asian nation, which has been among the worst-hit nations globally, recorded 2,927 new cases on Wednesday — the highest one-day jump since March 13 — pushing the total official tally past 43 million, according to government data. Deaths rose marginally, taking total fatalities to 523,654.

The step-up in government oversight underscores Mr Modi’s efforts to avoid another outbreak of the scale seen last summer, when daily cases topped 400,000, overwhelming hospitals and crematoriums.

As the deadly Delta variant ripped through the crowded nation of almost 1.4 billion people last year, some citizens resorted to pleading for oxygen and other medical resources on social-media platforms.

Health workers prepare a Covid-19 ward at a government hospital in Chennai, India, amid a rise in cases. EPA
Health workers prepare a Covid-19 ward at a government hospital in Chennai, India, amid a rise in cases. EPA

Mr Modi’s meeting with state chief ministers comes almost a week after the capital New Delhi reinstated mask mandates and stepped up surveillance for new Covid-19 variants.

Earlier this month, Mumbai detected the highly transmissible XE variant. While there are currently no stress signs in the country’s healthcare system, rising infections risk thwarting the recent return to normality as schools, offices and movie theatres have reopened.

“The filtered daily growth rate of new cases in India stood at 9.5 per cent on April 23, having risen steadily since turning positive on April 13,” a Covid-19 India tracker developed by the University of Cambridge said in an April 23 note. But the current surge looks “much more muted than the Omicron wave which took off towards the end of last year,” it said.

Bloomberg contributed to this report

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Updated: April 27, 2022, 9:06 AM