Chinese stocks in Hong Kong went for their best week since 2015, due to the reopening of speculation and a surge in technology shares.
In Friday s session, a gauge of nation s equities in the city jumped more than 5%. It is up about 8% for the week after unverified social media posts circulated earlier in the day that a committee was formed to assess scenarios on how to exit Covid Zero. The Hang Seng Tech Index was up over 6% on Friday.
Rumor mills have infused strong optimism in embattled China markets this week, where traders have been looking for reasons to scoop up shares in one of the world's worst performing major markets. Stocks have rallied even as authorities haven't given any indication of a change in their position on Covid Zero.
Justin Tang, head of Asian research at United First Partners, said there was still a tug of war between bulls and bears, bottom feeders and weary investors. After dropping in the previous session, stocks resumed gains on Friday, as China s top health body reiterated its commitment to the Covid Zero policy. On the mainland, the benchmark CSI 300 Index jumped more than 5% this week, on track for the largest gain since early 2021, on track for the largest gain since early 2021.
Despite some short-lived excitement about Covid-Zero policy changes, Morgan Stanley strategists including Laura Wang wrote in a note. We expect near-term market volatility to stay high with complexity around Covid relaxation and potential policy vacuum ahead of the Central Economic Work Conference. How does China Dominates the Elements of a Greener Economy?