Chinese stocks rally as shipping looks on for signs of Beijing easing covid measures

 Sam Chambers November 29, 2022 Splash 247.com

The stock markets in Hong Kong, Shenzhen and Shanghai closed up today as Beijing cracked down on nationwide protests and gave an indication that it was going to up its vaccination programme among the elderly, seen as a key hurdle in the opening up of the country post-pandemic.

The country had experienced anti-zero covid protests in many major cities in recent days, rallies on a scale not seen since the Tiananmen Square massacre of 1989.

However, a very heavy police presence at hotspots over the past 24 hours has quelled the protests.
China’s health authorities released a plan to boost elderly vaccination today, according to a notice on the National Health Commission’s website. At a press briefing this afternoon, health officials stressed excessive covid restrictions should be avoided.

The shipping industry – whether in tankers, dry bulk or containers – is anxiously watching news of an easing of covid restrictions to boost the economy, which is on track to grow at just 3% this year, its slowest growth for decades. The nation is by some considerable distance the most important country in the world for the fortunes of the shipping industry.

“The mood among investors has improved in today’s trading environment as protests in China have eased and suggestions that the country is looking at ways to ease the current strict Covid rules,” the latest daily markets update from chartering platform Shipfix suggested.

Goldman Sachs said yesterday that the nation may have a messy, but earlier-than-expected exit from its zero covid policy.