Global traders are increasingly feeling more bullish on China, as they bet the country will gradually Multiple cities across China loosened COVID-19 restrictions over the weekend. Starting Monday, Shanghai residents will no longer require a negative COVID test result to enter outdoor venues including parks and scenic attractions.
It also raised its target for Hong Kong's benchmark Hang Seng Index to 21,200 by the end of next year. That's up 10% from its current level. The Hang Seng climbed more than 4% on Monday, after logging a 27% gain in November, its best monthly performance since 1998. Mainland China's benchmark Shanghai Composite was up 1.7%, following a 9% gain last month.In addition to Shanghai, the nearby city of Hangzhou no longer requires people to scan QR codes or provide COVID test results when taking public transportation and entering public venues, except in some venues designated as high-risk, such as seniors homes and kindergartens.
Goldman Sachs, which had a baseline scenario for China to start to reopen in April, said on Monday that the probability of an earlier exit had increased. Copper and iron ore prices had settled higher last week. The gains were buoyed by hopes that the easing of restrictions and recently announced However, analysts also warned that China may still be a long way from ending its zero-COVID policy completely.