On Wednesday, Chinese policymakers reaffirmed that growth was still a top priority and that they would continue with reforms. This helped to support stock markets that had already been boosted by expectations that Beijing would relax its stringent COVID-19 regulations.
The authorities’ remarks appeared to be an effort to allay concerns that ideology may prevail as Xi Jinping began a new term as president and severe COVID regulations put an increasing strain on the second-largest economy in the world.
Investors clung to the optimism that China may relax its rigorous COVID policy in the coming months, despite the fact that the number of cases is increasing and disruptive lockdowns continue without a clear end in sight.
With a more targeted strategy, less stringent quarantine guidelines, and a more accurate evaluation of the virus, Morgan Stanley analysts believe China could soon fine-tune its COVID limits.
On Wednesday, equities in China and Hong Kong closed the day higher for a second time, and Chinese stocks listed in the United States increased in premarket trade.
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