Traders calling in sick with Covid-19 in Beijing had depressed trading volumes when China first reopened its economy in December. A recovery in local economic activities — and traders’ health — has boosted local stocks this month. Regulators want to turbocharge that rebound in the local $11tn equity market.
Foreign investors have noted a change in tone from Beijing about regulation and economic expansion. A recent Morgan Stanley poll of its global clients suggested the bulk expected China to drive a global economic recovery.
Global funds have already shifted Rmb29bn ($4.3bn) into China’s stock market this year, as sectors laden with regulatory risk, such as Chinese tech companies, started to look cheap, while alternative emerging markets such as India have run into trouble.