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China Stocks Slide as Covid Flareups Dent Optimism

  • Equities, yuan retreat after big gains earlier this month
  • Investors worry pivot away from Covid Zero will be patchy
Updated on

Chinese stocks and the yuan retreated as a string of reported Covid deaths and tighter restrictions in some districts gave investors a rude reminder that the path to any reopening will be rough.  

The Hang Seng China Enterprises Index dropped 2% in its fourth straight session of declines, paring this month’s rally to about 22%. Reopening stocks including casinos and restaurant chains tumbled. The onshore yuan weakened 0.7% against the dollar after gaining 1.4% last week.