“The road will be bumpy”: how long will the rally of Chinese stocks last

The long- awaited departure of the Chinese authorities from the policy of "zero tolerance for COVID-19", which the Chinese society had to achieve with the help of protests, gave some relief to the tense stock market from CHINA.

The duration of the rally will depend on whether the lifting of restrictions succeeds in reviving domestic business activity in China and how destructive the wave of the country's exit from the lockdowns under which it has lived for the past three years will be.

A number of major cities, including Beijing, have relaxed their methods of dealing with the spread of COVID-19: some restrictions on the movement of citizens and testing requirements have been lifted, despite a significant number of infections.

On Monday, the National HEALTH Commission said there were more than 30,000 new confirmed cases the day before, up from a peak of 36,000 early last week. Most of the new cases were asymptomatic.

The government has resumed measures to vaccinate the elderly, a key sign that a gradual return to normal is close at hand. Chinese leader Xi Jinping told visiting European officials last week that the virus has become less deadly since the pandemic began. Rhetoric about the dangers of the disease was also softened by the mainstream state media.