China markets soar on hopes of COVID-free policy change (OTCMKTS: CASBF)
Will China change its COVID-free stance in response to growing discontent? That is the burning question on traders’ minds, as protests and accompanying crackdowns take place on the streets of Beijing, Shanghai and elsewhere. It will be a delicate balancing act for Xi President Xi Jinping wants to pivot away from draconian policy, but in some ways he already has, such as the recently announced “20 measures” aimed at cutting the quarantine period for contacts. close to COVID cases and domestic travelers.
Policy tracking: Today’s meeting of China’s State Council is of particular importance, as the weekly press conference signals that further changes to existing measures may be on the way. “China has been closely monitoring and following the evolution and evolution of the virus,” officials said during the briefing, while health authorities laid out plans to increase vaccinations for people. old. China also reported a drop in the number of new COVID-19 infections with 38,645 after a record daily high of 40,347 on Sunday.
Markets love any sign of COVID-0 easing after some anxiety seen in previous session. Shanghai Composite is closed 2.3% higherwhile stocks in Hong Kong spike 5.4% and the Hang Seng TECH Index even ended the day up 7.7%. Chinese vaccine developers are also big winners, with a stake in CanSino Biologics (OTCPK: CASBF) spiked up to 18% in Hong Kong.
Why are the protests happening now? Xi Jinping has been at the helm for nearly a decade, but for much of that time, the benefits of a booming economy have been widely felt across China. Things have slowed down considerably due to COVID-free policies and many workers are now having a hard time making a living amid strict restrictions and closures. The current measures are also unpredictable and considered irrational, especially when the Chinese watch the World Cup without a mask and compare it to the rigorous protocols of the Beijing 2022 Winter Olympics. .
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