'Up to 70% in Shanghai have Covid-19' as Lunar New Year sparks mass infection fears


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About 70 per cent of residents in Shanghai may have been infected with the Covid-19 virus, a senior doctor told state media on Tuesday.

China is experiencing a huge surge in cases of the virus since loosening hardline restrictions which involved large-scale lockdowns.

Shanghai, a city of 25 million people, in April ordered a gruelling two-month lockdown after 600,000 residents were infected and many were hauled to mass quarantine centres.

Chen Erzhen, vice president at Ruijin Hospital and a member of Shanghai's Covid expert advisory panel, estimated that the majority of the city's 25 million people may have been infected.

“Now the spread of the epidemic in Shanghai is very wide, and it may have reached 70 per cent of the population, which is 20 to 30 times more than [in April and May],” Mr Erzhen told the People's Daily newspaper.

The Omicron variant is spreading rapidly across the city and experts predict infections there will peak in early 2023.

Beijing has admitted the scale of the outbreak has become “impossible” to track following the end of mandatory mass testing last month.

The National Health Commission has stopped publishing daily nationwide infection and death statistics.

That responsibility has been transferred to the Chinese Centre for Disease Control and Prevention (CDC), which will only publish figures once a month after China downgrades its management protocols for the disease on January 8.

Scientists have warned China it will face multiple waves of Covid-19 infections as the Omicron variant mutates to spread faster and evade immunity. EPA
Scientists have warned China it will face multiple waves of Covid-19 infections as the Omicron variant mutates to spread faster and evade immunity. EPA

Last month, a few local and regional authorities began sharing estimated daily infection totals as the scale of the outbreak remained unclear.

Disease control authorities in the wealthy coastal province of Zhejiang said on Tuesday that the number of new cases had jumped one million in the past few days, and “the epidemic is expected to enter a peak plateau in January”.

The Zhejiang cities of Quzhou and Zhoushan said at least 30 per cent of the population had contracted the virus.

The eastern coastal city of Qingdao estimated about 500,000 new daily cases, and the southern manufacturing centre of Dongguan up to 300,000.

Officials in the island province of Hainan estimated on Friday that the infection rate there had surpassed 50 per cent.

But top health official Wu Zunyou said on Thursday that the peak had passed in the cities of Beijing, Chengdu and Tianjin, with Guangzhou city officials saying the same on Sunday.

Lunar New Year travel

A woman adjusts her mask near decorations set up ahead of the coming Chinese Lunar New Year in Beijing. AP
A woman adjusts her mask near decorations set up ahead of the coming Chinese Lunar New Year in Beijing. AP

China's biggest holiday, Lunar New Year, is expected to see 5.5 million people use China's rail system, state broadcaster CCTV has said.

Travel has been severely restricted for the event for the last three years, but as people plan to head from cities to their home villages to celebrate the January 21 holiday, fears of more infections are mounting.

In an interview with state broadcaster CCTV on Monday, National Health Commission (NHC) official Jiao Yahui admitted that dealing with the expected peak in rural areas would be an "enormous challenge".

"There may be a retaliatory surge of urban residents into the countryside to visit their relatives, so we are even more worried about the rural epidemic."

Chinese authorities will brief the World Health Organisation on the situation on Tuesday. It reversed Covid controls on December 7 after protests over its “zero-Covid” approach in the strongest show of public defiance in decades.

The US, France, and other countries now require Covid tests on travellers from China, while Belgium said it would test wastewater from planes for new variants.

European Union health officials will meet on Wednesday to discuss a co-ordinated response.

China said the requirements lack scientific basis and are unreasonable.

Mao Ning, a spokeswoman for the Chinese foreign ministry, said China is “firmly opposed to such practices” and will take corresponding measures accordingly.

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.”

JAPANESE GRAND PRIX INFO

Schedule (All times UAE)
First practice: Friday, 5-6.30am
Second practice: Friday, 9-10.30am
Third practice: Saturday, 7-8am
Qualifying: Saturday, 10-11am
Race: Sunday, 9am-midday 

Race venue: Suzuka International Racing Course
Circuit Length: 5.807km
Number of Laps: 53
Watch live: beIN Sports HD

The specs

Engine: 2.0-litre 4cyl turbo

Power: 261hp at 5,500rpm

Torque: 405Nm at 1,750-3,500rpm

Transmission: 9-speed auto

Fuel consumption: 6.9L/100km

On sale: Now

Price: From Dh117,059

Updated: January 03, 2023, 8:40 AM