Vaccines and more flights are positive signs.
Goldman Sachs Group Inc. strategists report that Chinese stocks are reportedly up 20% as a result of China’s complete reopening, on the strength of indications that the government may be getting ready to relax its COVID-Zero policy.
It’s good news that there are more flights and that the inhalation vaccine is becoming more widely available.
Relaxation of rules is expected in the second quarter of 2023.
According to Goldman Sachs analysts, “the relaxation of COVID limitations could be one of the most obvious, eagerly anticipated, and potent triggers for market growth.”
They predict that the market will respond to any opening in approximately a month, that the bullish momentum can last for two to three months, and that the consumer sector and domestic cyclical companies will be the primary winners.
The Hang Seng China Enterprises index had its best week since 2015 last week, and the mainland Chinese stock benchmark CSI 300 index likewise had a more than 6% increase.