Hong Hao has "heard" that mainland China has set up a committee to evaluate the withdrawal and clarify the situation.

[15:05]Analyst Hong Hao posted on Twitter that he heard that a “Reopening Committee” had been established, headed by Wang Huning, a member of the Standing Committee of the Political Bureau of the CCP Central Committee. The committee is reviewing COVID data from the US / Hong Kong / Singapore to evaluate various reopening scenarios, with the aim of reopening next March.

I heard that the “Reopening Committee” was formed and led by Wang Huning, a permanent member of the Politburo. The committee is reviewing COVID data from USA / HK / SG to evaluate various reopening scenarios, target 03/2023 reopening.

HK finally rebounded 3%, A shares by 1%. $ EWH $ KWEB $ FXI $ PGJ https://t.co/ZgN2EYqUzH
– Hao HONG 洪灝, CFA (@HAOHONG_CFA) November 1, 2022

Liu Xiaodong, a fund manager at Shanghai Mishu Asset Management Co., Ltd., said the rumors circulating on the Internet about a conditional reopening are hardly surprising. He said the State Council may be awaiting discussion by the team of experts to determine the next step and the market is willing to believe that the turning point of dynamic compensation policy is approaching.

Hong Hao, partner of Grow Investment Group, said: “I think the market reaction shows how strong the expectations are for the reopening.”

Wang Chen, a partner at Xufang Investment, said the opening should drive the stock market, but policies are difficult to predict; purely from the market, this downturn, including consumer shares, is mostly interrupted by the epidemic. If there are political improvements, the market will react more quickly.

The Hang Seng Index also rose temporarily to 836 points or 6.16%, reaching a high of 15,592.01 points, the highest from 15,833.28 points on October 27.