Apple shares hit by Chinese protests over Covid restrictions

"If these protests continue, it could disrupt supply chains and the reopenings," said Brian Klimke, director of investment research at Cetera Financial Group.

Mon, 28 Nov, 2022 - 19:15

Shares in Europe and the US fell as protests against strict Covid-19 policies in major Chinese cities sparked concerns over economic growth and dragged commodity-linked shares lower, while Apple slid on worries about iPhone production.

Shares in the tech giant fell 2% as growing worker unrest at the world's biggest iPhone factory in China fanned fears of a deeper hit to the already-constrained production of higher-end models.

Rare protests in major Chinese cities over the weekend against the country's strict zero-Covid curbs have hit growth expectations in the world's second-largest economy.

"If these protests continue, it could disrupt supply chains and the reopenings, a glimpse of which we saw earlier this year," said Brian Klimke, director of investment research at Cetera Financial Group.

It will continue to weigh on investors' minds, going forward."

US-listed shares of Chinese companies such as Bilibili, Alibaba, JD.com, Baidu, and Nio eked out gains, however, rising between 1% and 2.2%.

"Those that are buying might be trying to pick up some ball games on stocks that have been way beaten down or maybe they think that this is going to force the [Chinese Communist] party's hand into relaxing some of the restrictions," said Robert Pavlik, senior portfolio manager at Dakota Wealth.

European oil shares dipped as crude oil prices fell on worries about the outlook for the world's biggest crude importer, while China-exposed car makers also slipped.

China posted record-high Covid-19 infections on Monday, raising worries about the management of the country's zero-Covid policy and its impact on the world's second-largest economy.

Reuters

Protests over China’s strict lockdown hit Shanghai and other cities