China's Shenzhou drops most in over 21 months as COVID-19 hits production

Shenzhou International group

03/01/2022 02:18

** Shares of Chinese garment maker Shenzhou International
Group Holdings Ltd  2313.HK  drop 7.9% to HK$138.10, their
biggest daily percentage decline since March 2020
    ** Stock hit the lowest since December 2020; biggest
percentage decliner in the Hang Seng Index  .HSI  and the Hang
Seng China Enterprises Index  .HSCE  
    ** The Zhejiang-based co says some of its production sites
in Beilun District in China's Ningbo will be affected by a
short-term suspension of production due to a lockdown in the
district as local government adopted control measures to curb
the spread of the pandemic   urn:newsml:reuters.com:*:nFWN2TI02T
    ** Citi says Ningbo plant is the largest contributor to the
group, accounting for 50-60% of garment output and 50% of fabric
output  
    ** "However, only a few cases have been identified so we
think even if suspension takes place it will only be for a short
while in our view," Citi said 
    ** We believe stock correction on the Ningbo impact is
possible, but volatility won't be substantial - Citi
    ** The  .HSCE  index slips 0.2% while the benchmark index
 .HSI  eases 0.1% 


 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))