Unpredictable Xi Spurs $100 Billion Rally With Abrupt Shifts

  • Market-friendly moves generate optimism that worst is over
  • Policies ‘overly dependent on Xi’s personality and ideology’
China Said to Be Considering Record Local Debt Quota
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After years of watching China’s economy take a beating from Covid Zero and moves to rein in the property and tech sectors, investors are suddenly optimistic that the worst is over.

The abrupt U-turn on strict Covid restrictions in early December has been swiftly followed up by other market-friendly changes. China is ending a two-year ban on Australian coal imports, easing up on tech giants like Alibaba Group Holding Ltd. and dialing back the stringent “three red lines” that exacerbated a property meltdown.