For a while, the Chinese stock markets had been plagued due to the impact of COVID-19. A few months back, China started to record a surge in COVID-19 cases and the situation just got worse.
As a result, the country had to take strict measures showing now flexibility in the COVID-19 safety measures. This also meant that the country would have to implement strict curfews and lockdowns.
It was also important for the Chinese government to ensure that the lockdowns were placed in the most populated areas. This meant that the business sectors and hubs in China would have to be closed as well.
In recent months, China had to do everything in its power to control the situation. It even imposed lockdowns that have impacted the economy, trades, and stock markets on a very large scale.
However, the country has finally started to make a recovery from the downtrend as it has recently lifted the strict lockdowns.
The stock markets are finally open in China so the companies are able to demonstrate their performances. It was assumed that as the stock markets resume, not many traders would participate.
However, all such claims faded as the Chinese stock markets opened and recorded huge gains.
Lockdowns are loosening in China
Finally, after a while, the Chinese cities started to lift or relax their lockdowns. This has allowed the businesses and offices in the country to reopen and work as normal.
This has changed the entire stock market situation in China as all major stocks from the Chinese market are surging. This means that despite the downfall, the Chinese economy is still very strong.
It has been over two years since the country has been dealing with the pandemic. While the rest of the world has already controlled the pandemic, China is fighting it for the past 2 years.
Finally, the country is able to bring it under control. With the businesses opening back up, the economy and the stock markets are experiencing uptrends.
Hang Seng TECH Index
One of the most prominent stock market indexes from China is the Hang Seng TECH Index. The particular index is known for having the top 30 companies from the technology sector.
All of the Hang Seng companies are listed on the Hong Kong stock exchange. The particular stock index has recorded an over 8% surge in the Monday trading session.
The performance of the Hang Seng index is quite phenomenal because in the third quarter, the weighted gains it recorded a 20%. Unfortunately, the year-to-date performance of the index remains in 27% negative.
Among the Hang Seng companies, the most prominent ones are Nio, Li Auto, Xpeng, Xiaomi, Alibaba, Meituan, Tencent, and Bilibili.
The recent trading session has seen a 15% surge in Nio’s trading price while Li Auto’s stocks have surged 12%. Then there is Xpeng with 24% gains, followed by Xiaomi with 11% gains, and Alibaba with 8% gains.
Meituan, Tencent, and Bilibili have also recorded 3%, 6%, and 25% gains respectively.
Other Stock Indexes
The CSI 300 Index and the Hang Seng Index which are listed on Mainland China’s stock exchange, have also performed well.
Both indexes have moved higher where the CSI 300 Index has surged 2% and Hang Seng Index has moved 4% higher.
China Stocks Are Headed Upwards
China is now determined to keep its stock markets and businesses opened. The country is going to fight COVID-19 with a different strategy and let the businesses run.
This has given a clear direction to the investors and most of the people in China who were uncertain about the country’s decision over COVID-19.
No one knew if the businesses would stay closed or would open soon. Now that the country is clear on what it needs to do, the investors will also know which direction they need to focus.