Quarantine measures by the Chinese authorities can cost companies dearly. China has one of the lowest COVID incidence rates in the world, but measures taken in case of a small outbreak of infection lead to millions of losses
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The fortune of the family of Chinese billionaire Ma Jianzhong decreased by $ 750 million in a day after the news about the suspension of production at the factories of one of the largest Chinese exporters of textiles, Shenzhou International, Forbes reports.
The Chinese authorities have introduced a lockdown and started universal testing of residents in the Ningbo city District in China after ten cases of coronavirus infection were detected there. After this decision, the shares of Shenzhou International lost about 10% in price, which led to a decrease in the capitalization of their owners, Ma Jianzhong and his family.
Shenzhou International manufactures and exports sportswear for international brands, including Nike, Uniqlo and Adidas.
The coronavirus pandemic began with an outbreak in Wuhan, China. However, at the same time, according to official statistics, China itself has one of the lowest incidence rates of COVID-19 in the world, thanks to tough government measures. In total, since the beginning of the epidemic, according to WHO, 131 thousand cases of coronavirus have been diagnosed in China, of which 1,327 in the last week. 5,699 people died of the disease during the pandemic.
When a disease outbreak is detected, the authorities block the area, stop production and impose strict quarantine — only one family member can go out for urgent needs (shopping) once a day for a limited time.
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