Chinese A shares and Hong Kong shares closed strong on Tuesday (1st), with the three major A-share indices up more than 2%, the Shanghai index regaining the 2,900 point mark. and the Hang Seng technology index which posted its biggest gain since April 29. The media reported that the Chinese government is preparing to gradually ease the “clearing” policy.
On Tuesday the Shanghai Composite Index rose 2.62% to close at 2,969.2 points, the Shenzhen Component Index rose 3.24% to 10,734.25 points, and the ChiNext Index rose 3.2% to 2,337. , 65 points;RMB 977.5 billion yuan and the net purchase of “Northbound Funds” was 6.115 billion yuan.
Shares in tourism, hotel and restaurant, beer, insurance, food and beverage have risen and groups such as agriculture, securities firms, building materials, non-ferrous metals, automobiles, construction and the medicine.
Hong Kong’s Hang Seng Index closed 5.23% higher, the largest one-day gain since October 5, and the Hang Seng Technology Index also rose 7.8%.
The A stock market extended gains in the afternoon, with unverified social media posts circulating online showing Chinese politicians forming a committee to evaluate various scenarios for exiting the “zero” policy, Bloomberg reported.
Hong Hao, partner and chief economist of the Sirui Group, said the market reaction shows how eager investors are for China to unlock.
However, the stock market has rallied in the past due to similar rumors, but investors’ hopes have been dashed by Beijing’s insistence on a “zero” policy.
Meanwhile, data released Tuesday by Caixin Media and Markit showed the October manufacturing PMI was 49.2, up 1.1 percentage points from September.
Wang Zhe, senior economist at the Caixin think tank, said the negative impact of the outbreak control measures on the economy still exists: manufacturing supply, domestic and foreign demand, and employment all contracted in October. but the rate of contraction was slower than in September.
