China, HK shares rebound sharply on unverified social media posts about covid relief | Techy Kings

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SHANGHAI, Nov 1 (Reuters) – Shares in Hong Kong and China rose on Tuesday after rumors based on an unverified notice circulating on social media that China was planning a reopening from strict covid curbs in March sparked a sharp recovery after last month’s wild sale.

A Chinese Foreign Ministry spokesman later said he was not aware of the situation.

The Hang Seng Index (.HSI) rose more than 5%, while the Hang Seng Tech Index (.HSTECH) rose nearly 8%.

China’s benchmark CSI300 Index (.CSI300) rose 3.4%. The Shanghai Composite Index (.SSEC) rose 2.6%.

An unverified note trending on social media, and tweeted by influential economist Hao Hong, said a “reopening committee” has been formed by Politburo permanent member Wang Huning, and is reviewing foreign covid data to assess various reopening scenarios, with the aim of mitigating covid – the rules in March 2023.

“I don’t know where you got this information. I really don’t know anything about this,” Foreign Ministry spokesman Zhao Lijian said when asked about such a committee.

The rebound also comes after signs that Chinese bargain hunters were piling into battered Hong Kong stocks last month as foreign investors dumped China’s assets in the aftermath of the Communist Party congress.

Linus Yip, chief strategist at First Shanghai Group, said the unconfirmed rumor sparked the rally.

“The market has fallen so much and has a will to recover,” Yip said.

Reporting by Shanghai Newsroom Editing by Tony Munroe and Sam Holmes

Our standards: Thomson Reuters Trust Principles.

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