Hebei officials have put three cities - Shijiazhuang, Xingtai, and Langfang - into lockdowns last week to mitigate the virus from spreading further. Beijing authorities expanded screening and prevention measures as cases continue to rise. 

Last Wednesday, Heilongjiang province declared a virus pandemic emergency. Also, the city of Suihua, in west-central Heilongjiang province, has put 5.2 million people under lockdown.

"The worsening coronavirus situation will impact economic activity, and markets may need to temper their expectations for strong pent-up consumption demand in the coming LNY holidays," Nomura wrote last week. 

One possible reason behind increasing caseloads in China could be due to frigid temperatures as the polar vortex splits into two and dumps Arctic air into certain parts of the country. Goldman Sachs recently told clients that when temperatures dip, expect virus outbreaks to accelerate - and that is exactly what is happening in China. 

Last week, an alleged video published on Twitter handle @TruthAbtChina shows the Chinese Communist Party (CCP) law enforcement or health officials or some governmental agency placing "seals" on apartment doors to make sure people abide by new lockdown orders.