Chinese stocks are looking like hedge fund darlings again as professional traders pile into beaten-down shares on the back of optimism that the world's second-largest economy will successfully reopen. Since the start of November, hedge funds have been consistent net buyers of China equities for eight of the past 10 weeks, according to data from Morgan Stanley.
"Such a dramatic U-turn then implies deeper economic contraction in 4Q22 but also faster reopening and recovery in 2023." On Dec. 7 , Chinese authorities removed virus testing requirements and health code checks for domestic travel. Beijing's previous zero-Covid policy attempted to shield China's 1.4 billion people from the virus, but the policy also limited economic activity and cut off the outside world.
People forgot about Russia so quickly.
$TSLA not that they need any excuse but big firms will now see this as a huge, China re-opening and booming play. Their economy will expand more quickly than the US (thanks to the Fediots).