SINGAPORE – Chinese markets soared and the yuan rose on Friday, November 4, with about a trillion dollars added to the value of Chinese stocks in week, as rumors and news reports fed hopes for twin relief in US-China tension and China’s tough COVID-19 rules.
Unsubstantiated social media posts flagging an aim to relax COVID-19 rules in March have also all week and seemed to get new momentum on Friday. Hedge fund manager Lei Ming said the reopening rumor is just the trigger for a rebound in an oversold market. The rally extended to commodities markets with iron ore futures and China-sensitive stocks listed in London and Europe.
Strategists at TD Securities continue to expect a gradual easing of zero-COVID restrictions, warning that markets could be in for some disappointment if investors are expecting something more rapid.Changes to COVID-19 policies have not been officially flagged. A foreign ministry spokesman said on Tuesday, November 1, he was not aware of the situation, when asked about rumors on social media that China was planning a reopening from strict COVID-19 curbs in March.