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China Stock Investors Fixated on Covid Curbs Shrug Off Stimulus

  • Investors call for more measures to revive market sentiment
  • PBOC’s surprise rate cut on Monday failed to lift the mood
Delivery drivers pass through a security checkpoint as several city blocks are sealed off due to Covid-19 in the Meilong township of Shanghai, China, on Aug. 15.

Delivery drivers pass through a security checkpoint as several city blocks are sealed off due to Covid-19 in the Meilong township of Shanghai, China, on Aug. 15.

Photographer: Qilai Shen/Bloomberg
Updated on

China is ramping up efforts to revive its economy and boost market confidence. But, stock investors preoccupied with the damage inflicted by the nation’s strict Covid-Zero strategy aren’t buying it.

A gauge of Chinese equities listed in Hong Kong is one of the world’s worst-performing major benchmarks this year, while the MSCI China Index is trading near the lowest level versus its global peers since 2005.