China’s “zero-tolerance” policy towards COVID-19 has pushed its most populous city, Shanghai, into one of the biggest shutdowns. The coronavirus curbs have also rattled economic institutions and markets as the country continues to fine-tune the restrictions.

The omicron outbreak in Shanghai has pushed nearly 26 million individuals indoors and with it the loud and busy markets of the city that is known for being at the center of global finance, manufacturing and trade.

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The lockdown is being conducted in two phases to limit the disruption, starting with the Pudong financial district and adjacent areas on the east side of the Huangpu River that divides Shanghai, according to reports from Associated Press.

What are the economic consequences?

Economic growth already was forecast to decline from last year’s 8.1% due to a government campaign to cut corporate debt and other challenges unrelated to the pandemic. The ruling party’s official target is 5.5%, but forecasters say even that looks hard to reach and will require stimulus spending.

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What do the local markets look like?

Local media reports suggest that most restaurants were permitted to continue operations, but not unconditionally. Individuals were required to place their orders through mobile phones and then wait outside the outlet for their orders. 

Face masks and registration on mobile apps were mandatory for those who wished to visit shopping malls.

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What else is different? And what is unchanged?

Thousands of stock traders and other finance employees were sleeping in their offices to avoid contact with outsiders, the newspaper Daily Economic News reported. It said the Shanghai Stock Exchange was functioning normally with a reduced staff in a “closed office.”

Operations at Shanghai airports and train stations were normal, according to the online news outlet The Paper. Bus service into and out of the city of 26 million was suspended earlier. Visitors are required to show a negative virus test, Associated Press reported.