Asia links 21 Jan 2021: China's "second wave", southbound flows, Biden reversing sanctions
Insight #1 – China is experiencing a new wave of infections
It’s hard to judge how serious the new wave of Wuhan virus infections across Northern China really is. Official numbers are modest, with only a hundred or so cases per day. But given that the government has completely locked-down several cities with multi-million populations, it has to be serious. Journalist Katsuji Nakazawa thinks that the heavy-handed measures are meant to ensure the March National Congress and the July CCP 100-year anniversary go smoothly. With Chinese New Year coming up in mid-February, the government has issued new orders to control physical gatherings under 10 people and control traffic to public venues. Travel restrictions have also been imposed. This “second wave” is clearly a net negative for Chinese travel and entertainment related stocks in the short-term.