HONG KONG/SHANGHAI : Chinese stocks reversed recent losses, the yuan rebounded while bond futures slumped on Tuesday as investors bet signs of civil discontent could prompt an easing of strict COVID-19 curbs and cheered a relaxation of regulations on developer fundraising.
Police had begun investigating some of the protests' participants on Tuesday, but health officials also outlined an effort to compress vaccination courses for the elderly and said complaints about policies were mainly to do with implementation. Ten-year cash yields are up 25 basis points this month, according to Refinitiv data, the largest monthly rise in 3-1/2 years as markets have gyrated to hints and rumours of a reopening, news of rising cases and fresh lockdowns.
The Nasdaq Golden Dragon index rose 2.8 per cent overnight and is up by a third in the past month, with Pinduoduo's result highlighting a divergent outlook with U.S. tech firms which had a mixed earnings season with several big disappointments.Property and banking shares also surged, after China's securities regulator lifted a six-year-old ban on China- and Hong Kong-listed Chinese developers selling additional stock.
A slew of China-listed developers, including Vanke, Jinke Property and Financial Street jumped to their daily limit of 10 per cent. In Hong Kong, Country Garden's property management arm rose 14 per cent and and Longfor Group surged 11 per cent.