China, Hong Kong Stocks Slump as Covid Lockdowns Bite

Chinese stocks suffered their biggest fall in a month as Covid restrictions and inflation worries weighed heavily on investors Chinese shares posted their biggest drop in nearly a month on Monday, hit by the country's harsh Covid-19 clampdown in Shanghai and other areas. This also impacted stocks in Hong Kong, where the Hang Seng Index fell by more than 3%. Continuing unease over tightening monetary policy in the United States and the effects of more extended lockdowns on the Chinese economy weighed heavily on sentiment. "With the government doggedly sticking to its Covid-zero policy, fears are increasing that an extended…