China Reopening Is Dominant Theme as Traders Seek an End to Rout

Stocks drop Thursday after 2-day jump on reopening speculation
Health authorities reiterated adherence to Covid Zero stance

WATCH: China’s top health body said the nation’s zero-tolerance approach remains the overall strategy to fighting Covid-19 after unverified social media posts buoyed hopes the policy would be eased. John Liu reports.Source: Bloomberg

Provide news feedback or report an error

Confidential tip?

Send a tip to our reporters

Site feedback:

Take our Survey

By John Cheng and Abhishek Vishnoi

November 3, 2022 at 1:56 AM UTC

Updated on

November 3, 2022 at 8:35 AM UTC

This article is for subscribers only.

If October was all about the Communist Party Congress, the flavor of this month for Chinese stock markets is the speculation around the nation’s reopening.

Equities rallied over the first two days of November as traders disgruntled by months of losses found succor in unverified social media posts that signaled Beijing is planning to move away from its stringent Covid Zero strategy. Stocks slumped again on Thursday as China’s top health body reiterated its commitment to the policy. A weak global backdrop given the Federal Reserve’s hawkish comments didn’t help.