China Stocks Slide as Xi Disappoints on Covid Zero Policy

(Bloomberg) – Chinese stocks resumed their decline as President Xi Jinping offered few signs of abandoning Covid Zero in his keynote speech, disappointing investors who were hoping for an easing of restrictions to support the market.

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The benchmark CSI 300 index slipped as low as 0.9% early Monday, after expectations ahead of the two-year Party Congress contributed to a jump on Friday. An indicator of Hong Kong-listed Chinese stocks also traded lower.

Chinese equities traders looked to the leaders’ rally to give the market further momentum after taking some of the worst losses in the world. Xi’s renewed commitment to technological autonomy may offer some respite, but overall the lack of a pivot away from Covid Zero and the absence of stimulus signals for the real estate sector have been a disappointment for investors. investors.

The onshore benchmark is down more than 22% this year as investors grapple with an economic slowdown and growing hostility between the US and China. Economists polled by Bloomberg forecast growth of just 3.3% this year, the second-lowest rate in over four decades.

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“Markets may be disappointed that there appears to be no change in Covid-zero policy and no clarity on an exit strategy,” Bloomberg Intelligence analyst Marvin Chen said. “No reports even for the real estate sector. These two questions are the main concerns of …

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