Why Chinese Stocks Are Popping on Wednesday
Despite Chinese leaders insisting their zero-COVID policy will stay in place, investors are betting that the economy opens up and improves sometime in the near future. Protests across the country have been seen over the past week, which could force officials in China to take measures to loosen restrictions, some of which we're already seeing.
Gains have been widespread across Chinese stocks, but there are some big movers. Social media network Weibo (NASDAQ: WB) jumped as much as 11.9%; travel firm Atour Lifestyle Holdings (NASDAQ: ATAT) was up 14.5%; educator Gaotu Techedu (NYSE: GOTU) jumped 17.7%; and Full Truck Alliance (NYSE: YMM) rose 12%. The stocks were up 11.1%, 11.4%, 15%, and 8.6% respectively at 10:50 a.m. ET.
Investment research firm Alpine Macro said China's zero-COVID policy "has passed the point of no return" as protests grow and citizens saw World Cup soccer games attended by tens of thousands of fans with no masks. What's not clear is whether China will make a policy change by choice or if it will be forced to by increasing protests.
Source Fool.com
