China Stock Rally Fizzles as Covid Woes Return to Sour Sentiment
- Hang Seng China Enterprises Index pares bulk of its 2.6% gain
- Stocks rose earlier as authorities sought to boost confidence
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Just as Chinese stocks were showing signs of a revival after Monday’s historic rout, traders were reminded of the fragility of a market that’s been bogged down by President Xi Jinping’s Covid-Zero policy.
As reports of a lockdown in one of Wuhan city’s central districts filtered through trading rooms, equity gauges in China and Hong Kong pared more than half of their advance. An index of Casino shares also erased most of its gains as Macau reported one Covid case.