There may be a lockdown in China, the stock market has been diving for 15 days, the economy may collapse
China, the world's second largest economy, seems to be in danger and once again Corona has emerged as a big reason for this. If the lockdown is imposed, then its consequences for the country's economy will be quite frightening.
The havoc of Corona is not over yet. The general public is very upset due to Coronavirus in China. In view of this new effect of corona, if lockdown is resorted to to curb the increasing outbreak of corona infection, then it will create a big problem for the economy.
These days in China, Corona has again created panic, after which the Chinese stock market has broken badly in the last 15 days. China's Hang Seng China Enterprise Index has fallen by nearly 9 percent since June 28. In such a situation, concerns have arisen again in front of investors that if the cases of corona increase, then economic activities will come to a standstill again. The fear of Corona can be gauged from the fact that a city in China was closed for 3 days only after only one case of infection was reported.
If the corona infection increases in China, then the lockdown may be announced again. Due to this there is a fear of halting of production in factories, while it will also have an impact on construction activities. Whereas, the construction companies of China, which are facing debt, are already facing difficulties. In this, Evergrande Group can default on the loan, while the price of Iron Ore shares has reached a 7-month low.