China’s Reopening Plans Spark Rally in Consumer Stocks, Yuan
- Consumer sectors lead advance in China equities as curbs eased
- Chinese economy to recover from June, OCBC economist says
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The yuan and Chinese consumer stocks rallied as key cities eased Covid restrictions, spurring bets that the worst of the economic impact from strict lockdowns is over.
The offshore yuan and the benchmark CSI 300 Index both rose around 0.7%, with consumer shares leading gains. The easing of restrictions in Beijing and Shanghai are likely to boost expectations that Chinese shares are bottoming out, with investors including Amundi SA turning bullish as policymakers step up growth support.