China’s lifting of Covid curbs yields little cheer as recession fears weigh on markets

MARKET reaction to China’s reopening news has been muted, with several benchmark indices trading down and analysts saying the loosening is unlikely to boost growth significantly. This is especially so given recession fears looming in the West.

On Wednesday (Dec 7), China announced a nationwide loosening of Covid-19 restrictions. The country had been facing rare protests over its strict zero-Covid policy.

China said it would reduce the need for testing and lockdowns, as well as allow self-isolation at home for those with non-severe Covid cases. In its Politburo meeting, the Chinese government also said it would focus on economic growth.