Chinese Stocks Add to Historic Rally as Reopening Signs Grow

Pedestrians walk along an elevated walkway as an electronic ticker displays stock figures in Shanghai's Lujiazui Financial District on Oct. 10. Photo: Bloomberg

(Bloomberg) — Chinese stocks extended gains into the new month amid fresh signs that the nation is moving away from a “zero Covid” policy that’s wreaked havoc on markets and the economy.

The Hang Seng China Enterprises Index rose 3.7% before paring gains by more than half, following a 29% gain in November that was the biggest since 2003. The onshore yuan strengthened for the third day. Federal Reserve Chair Jerome Powell’s speech signaling a slower pace of rate hike also aided risk-on mood.