Hong Kong-owned electronics factory shuts down in Shenzhen and lays off workers as economic downturn bites

Xin An Electrical (Shenzhen) Co has a factory in the Bao’an District of Shenzhen, employing hundreds. Xin An Electrical, owned by Simatelex, said that it will pay employees compensation in accordance with the country’s labour laws. — SCMP

A Hong Kong-owned electronics company has closed a decades-old factory in Shenzhen, throwing hundreds of workers out of work, as China’s economic downturn and export weakness continue to erode the country’s manufacturing base, according to local media reports and an employee.

Xin An Electrical (Shenzhen) Co, which has a factory in the Bao’an District of Shenzhen, told workers that it will cease operations on Friday due to a deteriorating business situation, lower orders after the Covid-19 pandemic and the global economic downturn, according to a notice published by local Chinese media.