China’s Commitment to Covid-Zero Undermines Support for Market
- Covid easing seen as ultimate answer to growth, market woes
- Tech regulatory risks still in focus for Hong Kong shares
Residents take part in a round of Covid-19 testing in a neighborhood placed under lockdown in Shanghai, on April 12
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
Patience is wearing thin among China’s beleaguered stock investors as worries about the impact of the latest Covid upsurge eclipse promises of official market support.
Authorities have somewhat delivered on last month’s pledges by extending a lifeline to the property sector, committing to ease monetary policy, shelving plans for a real-estate tax, restarting some gaming approvals and removing a key hurdle that threatened to pull ADRs listed in New York. But the market reaction has been a damp squib as all eyes turn to the effects of Covid Zero.