U.S. Listed Chinese Shares Give Up Earlier Gains As Investors Digest Shift In Reopening

Bloomberg | Bloomberg | Getty Images Shares of U.S.-listed Chinese companies erased earlier gains on Monday after China eased more Covid restrictions to speed up the opening of the economy. The Invesco Golden Dragon China ETF, which tracks the Nasdaq Golden Dragon China Index, last traded 0.5% lower after rising 3% earlier. Alibaba and Pinduoduo earlier posted gains, rising just 0.5 percent. Tencent Music Entertainment also rose, falling 1%. Bilibili was flat after rallying 10% earlier in the session. The index holds 65 companies whose common stock is publicly traded in the US. The majority of their operations are conducted in the People’s Republic of China. The earlier rally came as some major cities such as Beijing and Shenzhen take steps to ease Covid testing requirements and quarantine rules amid an economic slowdown and public unrest. The move marked a shift from China’s zero-tolerance approach that has included forced lockdowns and frequent testing over the past two years. China is poised to announce a nationwide reduction in testing requirements and allow positive cases and close contacts to self-isolate at home under certain conditions, Reuters reported, citing sources familiar with the matter. Morgan Stanley upgraded Chinese stocks to an overweight rating in light of the policy shift. Morgan Stanley had an equal rating on Chinese stocks for nearly two years. The Wall Street firm called the recent developments “a confirmed path towards the eventual post-Covid reopening”. The Hang Seng technology index, which represents the 30 largest technology companies listed in Hong Kong, rose 9.3 percent in Asian trading hours. China’s onshore and offshore yuan topped $7 against the US dollar for the first time since mid-September. – CNBC’s Michael Bloom and Jihye Lee contributed to this report

title: “U.S. Listed Chinese Shares Give Up Earlier Gains As Investors Digest Shift In Reopening " ShowToc: true date: “2022-12-03” author: “Jose Valone”

Bloomberg | Bloomberg | Getty Images Shares of U.S.-listed Chinese companies erased earlier gains on Monday after China eased more Covid restrictions to speed up the opening of the economy. The Invesco Golden Dragon China ETF, which tracks the Nasdaq Golden Dragon China Index, last traded 0.5% lower after rising 3% earlier. Alibaba and Pinduoduo earlier posted gains, rising just 0.5 percent. Tencent Music Entertainment also rose, falling 1%. Bilibili was flat after rallying 10% earlier in the session. The index holds 65 companies whose common stock is publicly traded in the US. The majority of their operations are conducted in the People’s Republic of China. The earlier rally came as some major cities such as Beijing and Shenzhen take steps to ease Covid testing requirements and quarantine rules amid an economic slowdown and public unrest. The move marked a shift from China’s zero-tolerance approach that has included forced lockdowns and frequent testing over the past two years. China is poised to announce a nationwide reduction in testing requirements and allow positive cases and close contacts to self-isolate at home under certain conditions, Reuters reported, citing sources familiar with the matter. Morgan Stanley upgraded Chinese stocks to an overweight rating in light of the policy shift. Morgan Stanley had an equal rating on Chinese stocks for nearly two years. The Wall Street firm called the recent developments “a confirmed path towards the eventual post-Covid reopening”. The Hang Seng technology index, which represents the 30 largest technology companies listed in Hong Kong, rose 9.3 percent in Asian trading hours. China’s onshore and offshore yuan topped $7 against the US dollar for the first time since mid-September. – CNBC’s Michael Bloom and Jihye Lee contributed to this report