(Bloomberg) -- Large companies in Shenzhen are being told they can exit so-called closed-loop management systems that have been in place for about a week as Covid-19 cases in the Chinese technology hub ease.

Among China’s top 50 cities by economic size, only Chengdu has widespread Covid restrictions in place for most of its districts as it remains vigilant even as infections drop. Most entertainment venues are shut, with public transport suspended in some areas. The capital of the southwestern Sichuan province, with 21 million residents, reported seven cases on Sunday, down from 28 a week ago.

With transmission mostly under control, the tightly controlled system mandated by the Shenzhen government to allow continued operations for its 100 biggest companies -- including Foxconn Technology Group and oil producer Cnooc Ltd. -- ended on Saturday and wasn’t renewed, according to people familiar with the order, who asked to remain unnamed.

Cnooc and the Industry and Information Technology Bureau of Shenzhen Municipality, which issued the close-loop notice, didn’t immediately respond to requests for comment.  

The number of infections in China fell to 277 on Sunday, the lowest level in almost three weeks. Shanghai had no cases for the first time in a month, while Beijing and Shenzhen posted only one each.

Hot Spots

Beihai city in Guangxi province in the south and Gansu province in the north remain Covid hotspots, accounting for 74% of the country’s cases in the past week. Officials in Beihai, a tourist destination on the South China Sea, said on Sunday that there hasn’t been any community transmission for the past three days. Only one district remains under lockdown. The city reported 43 cases on Sunday, down from almost 400 a week earlier.

The capital of Gansu province, Lanzhou, also lifted its lockdown, with supermarkets and shops reopening in low risk areas. The city still has about 70 areas considered high risk, where residents are required to stay at home. Cases have fallen from 113 a week ago to 13 on Sunday. 

Linxia prefecture has become the province’s outbreak hotspot, reporting 61 cases for Sunday.

Movement Indicators

  • Ridership in 11 of China’s main subway systems dipped slightly last week, with Shenzhen and Chengdu seeing declines
  • Shenzhen’s top companies were under closed-loop management system for seven days, meaning employees had to limit their movements to work and housing
  • Most of Chengdu’s districts still have restrictions in place, with public transport suspended in some areas

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