China’s Reopening Rally May Be Smoother Than Actual Covid Exit
- Shanghai Composite may retest summer peak as restrictions ease
- ChiNext’s gains may stall at technical resistance levels
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While China’s emergence from almost three years of pandemic isolation is paved with uncertainty, technical charts signal Chinese stocks may enjoy some smooth gains as the economy reopens.
The incremental easing of Covid restrictions in cities from Beijing to Hangzhou has brightened the outlook for Chinese stocks, and both onshore and offshore gauges may rise toward levels reached earlier this year when optimism over an end to lockdowns and an economic recovery drove gains.