Investors bet China's rally on easing COVID curbs will be furious but fleeting - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.

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Investors piling into China’s tourism, catering and beverage stocks as Beijing eases strict COVID-19 curbs are also keeping an eye on the exits, factoring in risks of a surge in infections early next year that could hit consumption and production.

[File Image] : A pedestrian walks past a giant display showing the Shanghai stock index in Shanghai, China[File Image] : A pedestrian walks past a giant display showing the Shanghai stock index in Shanghai, China

China’s stocks and currency have jumped and global banks have turned more bullish on its prospects, as Beijing moved towards a more targeted zero-COVID-19 policy while reducing virus testing and quarantines, after it was confronted by widespread anti-lockdown protests. “If other economies offer any guide, the consumption recovery is likely to disappoint in the short term after an economic reopening,” Zhang said.

A possible jump in infections and deaths could curtail social activity and hurt retailers, according to the study, based on data from Singapore, South Korea, Indonesia, Vietnam, Thailand, Hong Kong and Taiwan.

 

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