Chinese indices rose sharply buoyed by renewed speculation over an imminent relaxation of China's COVID curbs. Recently, speculation about the lifting of restrictions in China triggered a massive rebound in the stock market, but this information was denied by the health ministry, which indicated that the zero-covid policy would continue. Nevertheless, investors hope for a change in the approach of the authorities.
The Council of State was to ask government agencies to prepare for lifting some covid-related mechanisms including covid flight suspensions. In addition, there is also talk of reducing the compulsory quarantine for foreign passengers. It is worth noting that the strong restrictions were previously lifted in July in Hong Kong.
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Create account Try a demo Download mobile app Download mobile appBesides this unconfirmed news on relaxing Covid restrictions, the Bloomberg report on US on-site inspections of Chinese companies also had an impact on the improvement of market sentiments. US inspection of Chinese company audits was completed ahead of schedule and many investors see this as a move which aims to help prevent delisting of Chinese stocks from US exchanges
The daily number of covid cases in China is rising moderately, although this is not as strong an increase as it was in the August-September period. It cannot be said, however, that the pandemic is retreating in China. Source: Bloomberg
CHNComp is preparing for its first strong rebound since May-June. However, it is worth remembering that the contract loses over 30% in the perspective of one year. Additionally, one can notice that a supply zone is forming on USDCNH pair, even despite the very strong dollar. Source: xStation5
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