Shanghai operators sleep in offices to continue working

(Bloomberg) As China's major financial centers face the worst outbreaks of covid to date, many fund managers open their sleeping bags on the floors of operations in Shanghai and Shenzhen.

Many operators volunteer to take turns and sleep in their offices to avoid strict restrictions at a time when Chinese capital markets are experiencing the greatest episode of volatility since mid-2020.

Shanghai became one of the epicenters of new coronavirus infections in the country. Employers are preparing for the possibility of sudden shutdowns that could force operators to quarantine at home or at work for days or even weeks. That means making sure workers have enough supplies on hand in case they get stuck in the office. At AXA SPDB Investment Managers Co., for example, staff have access to inflatable mattresses, instant noodles and emergency kits.

“We are on the front lines of investment here and we need faster and more effective personal communications,” said Alex Wang, who along with a dozen of his colleagues at another fund company volunteered to take turns and live in his Shanghai office for the past two weeks with the company's consent.

The Shanghai City Government has urged people in its major financial and business districts to work from home while implementing residential and office closures, as well as mass testing to combat the country's worst covid outbreak since the pandemic emerged in early 2020. Nearly 400 cases were reported over the past two days in Pudong district, where a group of national and international banks and the Shanghai Stock Exchange are located.

While some companies allow workers to return to the office if they can submit negative results from nucleic tests, which are usually taken within 48 hours, other companies simply cannot because they have closed their buildings indefinitely for covid testing, similar to what happened last week in the Shanghai Tower, where firms such as JPMorgan Chase & Co. and Fitch Ratings Inc. have offices.

China's stock market recorded one of its most volatile periods in decades last week, with record declines followed by dizzying reversals after Beijing made a series of sweeping promises to stabilize stocks. A two-day rally restored the market value to US$1.3 trillion in Hong Kong and the continent, although both markets are still well below this year overall.

While most Chinese employers encourage employees to work from home as much as possible given the spread of covid-19, some workers complain of compliance issues, irregular internet connections, and other distractions.

China has stuck to the so-called covid zero policy that increasingly isolates it as the countries of the world learn to live with variants such as omicron.

Other firms in Shanghai that have made contingency plans for office closures include CIB Fund Management Co. and ABC-CA Fund Management Co.

ABC-CA fund managers are arriving with suitcases full of clothing and essentials to work with since the company allowed flexible work arrangements last week. The company has provisions such as cots, sleeping bags and personal hygiene products in case of emergencies such as the closure of a building, according to a statement on its WeChat account.

Ma Yijun, ABC-CA's fund manager, said he hasn't left his office since last Thursday and is not sure when he will be able to return home to his family.

Original Note:

Traders Sleep in Offices to Keep Working Amid Shanghai Lockdowns

More stories like this are available on bloomberg.com

©2022 Bloomberg L.P.