Hong Kong: Stocks surge more than 3% on China Covid moves

HONG Kong stocks started Monday with more big gains as traders welcomed Chinese authorities’ moves to roll back more of the strict Covid containment measures that have hammered the economy. The Hang Seng Index rallied 3.58 per cent, or 668.45 points, to 19,343.80. The Shanghai Composite Index added 1.35 per cent, or 42.67 points, to 3,198.81, while the Shenzhen Composite Index on China’s second exchange climbed 0.85 per cent, or 17.31 points, to 2,061.92. Chinese leaders have shifted their approach to fighting Covid after widespread protests across the country last weekend that also called for more political freedom. The tough zero-Covid strategy – which saw long lockdowns in major cities including Beijing and Shanghai – has been blamed for a sharp slowdown in economic growth this year and sent shudders through markets. The move to reopening helped fuel “market optimism about the tailwinds of a likely acceleration in growth in 2023 for China-sensitive assets”, said SPI Asset Management’s Stephen Innes. AFP