The Chinese yuan weakened against its US counterpart on Monday, though it had pared some of its losses. The broader global financial markets tanked in the fallout of COVID-related protests that have scattered throughout China, with investors fearing a contagion event in the wider economic landscape. Will Beijing’s demonstrations add to slowdown fears?

The political upheaval and social unrest in the world’s second-largest economy have highlighted the largest show of public dissent against President Xi Jinping and the ruling Community Party in years.

This has largely been in response to the government’s COVID-Zero strategy that has resulted in renewed public health measures, including isolation and lockdowns, that have triggered economic and human costs. In many cases, families have limited access to food and medicine.

Reportedly, an apartment fire in northwestern Xinjiang might have been the catalyst for nationwide demonstrations.

“For investors, when it comes to China, trying to predict with any degree the reopening certainty that has no certainty, basis, or track record to go by is looking like a dangerous game in the context of the disquietening protests and the colossal challenge China’s leaders now have on their hands,” said Stephen Innes of SPI Asset Management in a note.

Officials have not publicly responded to the national protests, although they have stated that their restrictions are in response to the growing number of infections.

Meanwhile, the central government and the People’s Bank of China (PBoC) have tried to limit the economic damage from these coronavirus-related mechanisms.

Last week, the central bank lowered the reserve requirement ratio (RRR) to 7.8%, injecting about $70 billion into the financial system. But this might not be enough to calm investor sentiment, as the Shanghai Composite Index slumped 1%, the Hang Seng Index tumbled 2%, the Nikkei 225 Index dropped 0.5%, and the Kospi shed 1.1%.

US stocks also plunged on the news, with the Dow Jones Industrial Average cratering more than 500 points to kick off the trading week.

On the economic data front, year-to-date industrial profits fell 3% year-over-year in October, down from -2.3% in September.

The USD/CNY currency pair rose 0.6% to 7.2082, from an opening of 7.1654, at 19:29 GMT on Monday. The EUR/CNY slipped 0.06% to 7.4486, from an opening of 7.4524.