Covid’s Shadow Looms Large Over Any Post-Holiday China Gains
- China stocks went into Golden Week near the lowest since 2020
- Focus is seen shifting back to Covid Zero, property crisis
This article is for subscribers only.
Chinese traders returning from the Golden Week holiday are set to face a raft of conflicting signals, mitigating the market’s chances of playing catch-up to the small advance seen in global stocks.
Having started last week with its best two-day rally since April 2020, a gauge of world equities finished the period with a gain of just 1.7% as Friday’s solid US jobs figures sent shares tumbling again on renewed bets for aggressive Federal Reserve rate hikes. While the Hang Seng China Enterprises Index of Chinese stocks in Hong Kong is up nearly 3% since onshore shares last traded at the end of September, it closed before Friday’s US data. The offshore yuan has had a tiny weekly gain versus the dollar.