Chinese stocks listed in the US rose in pre-market trading on Tuesday on speculation that Beijing was preparing to phase out its zero clearing policy. However, the Chinese Foreign Ministry said it was not aware of this.
Alibaba (BABA-USA), Pinduodo (PDD-USA), JD.com (JD-USA) and other internet giants increased by more than 6% while on the high seasRMBIt also strengthened against the US dollar.
Optimism that China may loosen its grip on the outbreak has prevented US-listed China-listed stocks from falling further. Chinese stocks fell to a nine-year low last week on fears the government might tighten control after Xi Jinping was re-elected president at the 20th National Congress of the Communist Party of China last week.
An unverified social media post circulated in the market saying that China had formed a committee to consider easing its strict zero outbreak policy. According to the post, the committee is expected to reopen in March next year. In response, Chinese Foreign Ministry spokesman Zhao Lijian said he was “not aware” of any such committee.
