Chinese stocks have had a phenomenal run over the last two weeks. The Hang Seng index is over 22% higher than a low struck in late October. And some of the big outperformers were in the battered property sector. There are a few likely catalysts for the rally. The first was a series of measures which suggested some softening of China’s zero covid stance. Quarantine measures were eased, as were travel restrictions. These measures came off the back rumours circulated on social media that a committee was being set up to prepare for re-opening in March. Another factor was news first published by Bloomberg, revealing that regulators were issuing a “sweeping” new rescue package for the property sector.
China’s Pivot
China’s Pivot
China’s Pivot
Chinese stocks have had a phenomenal run over the last two weeks. The Hang Seng index is over 22% higher than a low struck in late October. And some of the big outperformers were in the battered property sector. There are a few likely catalysts for the rally. The first was a series of measures which suggested some softening of China’s zero covid stance. Quarantine measures were eased, as were travel restrictions. These measures came off the back rumours circulated on social media that a committee was being set up to prepare for re-opening in March. Another factor was news first published by Bloomberg, revealing that regulators were issuing a “sweeping” new rescue package for the property sector.