Chinese stocks are back on the rise following heavy losses (Getty)
Investors are betting that China may ease up “Zero Covid” policy Which threatens Chinese economic growth and financial markets.
In the first indications of this assumption, global stocks rose in trading today, Tuesday, as tensions over protests in China eased from Covid restrictions.
According to the data published today by the American “Fortune” magazine, the Hong Kong benchmark index rose by 5.2%, and most other markets in Europe and Asia witnessed a significant increase in trading.
And in another indication of the possibility of China easing the tightening restrictions on… Fighting the Corona pandemic Through the “zero Covid” policy, oil futures contracts in the United States rose more than one dollar per barrel, according to “Bloomberg” data.
Analysts believe that the Chinese economy has been subjected to a state of suffocation through the “zero Covid” policy, which has so far included widespread closures that have threatened global supply chains that depend on the Chinese market for many spare parts and key materials in the industry.
In Shanghai, Chinese stocks rebounded following suffering sharp losses on Monday, in the wake of the protests that took place in the country over the weekend in various Chinese cities.
According to Fortune’s analysis, further expansion of the epidemic lockdowns might slow down the Chinese economy further and harm the global economy.
In this regard, Stephen Innes, an analyst at SBI Asset Management, said in a report that other factors also contributed to Tuesday’s recovery, including “that China’s markets are moving towards support for new housing, a possible rate cut, and speculation that the protests may Acceleration of transition from “zero Covid” policies.
The “Hang Seng” index in Hong Kong closed today at 18,204.68 points, while the Shanghai Composite Index added 2.3%, closing at 3,149.75 points. China’s markets usually close early before the opening of European markets.
