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China Growth Stocks Look Like Havens as Markets Confront Omicron

  • ChiNext Index climbs as much as 1.6% amid broad Asia weakness
  • Nation’s Covid-zero policy seems to find favor among investors
Covid Measures in Beijing Ahead of Communist Party Plenum
Photographer: Gilles Sabrie/Bloomberg
Updated on

China’s Covid-zero strategy seems to be proving a boon for its equities as global markets fret over the omicron coronavirus strain. Nowhere is this more evident than in the performance of the nation’s growth-heavy ChiNext Index.

The gauge dominated by technology and health-care names climbed as much as 1.6% on Monday before closing 1% higher. That’s even as Asian stocks extended losses after Friday’s rout. Renewables and vaccine shares on the ChiNext jumped as investors looked for safe bets.