Chinese indices extend bullish momentum 📈

We are seeing a huge rebound today in both mainland Chinese index (CHNComp) and Hong-Kong index (HKComp) contracts. The increases come after China softened the narrative around its radical Zero Covid policy, and the wave of protests has not spread to the rest of the country. CHNComp is gaining nearly 5%, HKComp is trading 4% higher, with both indexes extending their morning gains:

• China's National Health Commission (NHC) indicated that Chinese officials should avoid excessive COVID-19 restrictions;
• In addition, China lifted a long-standing ban on the sale of shares by construction companies, and Xi Jinping announced closer energy cooperation with Russia;
• China's Guangdong Province will allow home quarantine for those in contact with COVID-19 infected individuals who meet certain conditions. China will strengthen regulations on COVID testing companies;
• Some Chinese officials have indicated that Covid inspections among some local governments are not going well.

CHNComp chart, interal M30. Source: xStation5