China street protests continue as country reports record Covid-19 cases


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Rare protests continued in several cities in China on Monday after a deadly fire in the city of Urumqi, capital of the north-western region of Xinjiang, stirred anger against Covid-19 restrictions.

Demonstrations were held in Beijing and Shanghai and also reported in several other cities — including Wuhan, where the virus originated three years ago.

The embassy in Abu Dhabi did not immediately respond to The National's request for comment.

The death of at least 10 people in an Urumqi apartment block fire on Saturday has been the catalyst for the protests, with a vigil for the victims turning into an anti-lockdown demonstration.

Some reports have said rescue efforts were hindered by measures to curb the spread of the virus. The authorities have denied this.

Chinese stocks fell on Monday and the yuan weakened against the dollar amid concerns about the protests. Its blue-chip CSI 300 Index recorded its worst day in a month, while Hong Kong's Hang Seng index also dropped.

Demonstrators light candles for the victims of the Urumqi fire during a protest in Beijing on Sunday. Bloomberg
Demonstrators light candles for the victims of the Urumqi fire during a protest in Beijing on Sunday. Bloomberg

China's zero-Covid policy has resulted in snap lockdowns and mass testing in many parts of the country. On Monday, a record number of 40,000 new cases was reported.

Protesters in Shanghai gathered once again on the city's Wulumuqi street — named after Urumqi ― returning to the site for a silent protest just hours after a previous vigil was dispersed by officials.

A BBC journalist was held by police while reporting on the protests in Shanghai, the broadcaster said on Monday morning.

China's foreign ministry said Edward Lawrence did not identify himself as a journalist and the BBC's statement “did not reflect what happened”.

In a press briefing on Monday evening, ministry spokesman Zhao Lijian said “forces with ulterior motives” on social media were linking the Urumqi fire to Covid-19 policies.

“We believe that with the leadership of the Chinese Communist Party and support of the Chinese people, our fight against Covid-19 will be successful,” he added.

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: November 28, 2022, 11:29 AM