Chinese stock market surges amid an increase in Covid cases
Covid-19 has once again knocked on the doors of the major cities of China, increasing the concern for a new wave of pandemics. Despite the sudden increase in Covid cases, the Chinese stock market rebounded after a profound plunge witnessed in past days. Despite massive testing conducted in various cities, The Shanghai composite was up almost 1%, while the Shenzhen component leaped by 1.31%. The CSI 300 rose 1.41%.
China's central bank stated that the stock market witnessed certain fluctuations caused by investor sentiment earlier. In the present scenario, China's central bank claimed, "At present, China's economic growth is sound. The growth is likely to mushroom and make substantial progress in diluting the financial risk." The people's Bank of China also claimed that it would continue to boost its support for the economy and will endeavor to attack the industries which suffered due to the pandemic.
Contradict this scenario of the Chinese stock market, Hong Kong stocks have plunged as the worries over a new wave of Covid and possible lockdowns in Beijing are prevailing.