China Markets Rally After Unconfirmed Social Posts on Reopening
- Stocks, yuan rebound on speculation Covid Zero may ease
- Diplomat says unaware of a committee on ending Covid Zero
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Chinese stocks roared back from a rout and the yuan strengthened as speculation mounted that policymakers are making preparations to gradually exit the stringent Covid Zero policy that’s been the biggest bugbear for investors.
A gauge of Chinese stocks listed in Hong Kong surged almost 7% intraday, rebounding from its lowest close since late 2005, as unverified social media posts circulated online that a committee was being formed to assess scenarios on how to exit Covid Zero. Shares pared gains after Chinese Foreign Ministry spokesman Zhao Lijian said he’s “not aware” of such a committee.