SINGAPORE (Reuters) - Chinese markets soared and the yuan rose on Friday, with about a trillion dollars added to the value of Chinese stocks in week, as rumors and news reports fed hopes for twin relief in U.S.-China tension and China’s tough COVID rules.
The Hang Seng surged 5.3% and notched its biggest weekly gain in 11 years. The Shanghai Composite rose 2.4% for a 5.3% weekly gain, the largest in more than two years and China-sensitive assets around the world rose sharply.
Bloomberg News reported initial U.S. inspections of audit papers at U.S.-listed Chinese companies - a long-running point of regulatory tension and risk - finished ahead of time, raising hopes that the U.S. officials were satisfied.
Unsubstantiated social media posts flagging an aim to relax COVID rules in March have also driven optimism all week and seemed to get new momentum on Friday.
Hedge fund manager Lei Ming said the re-opening rumour is just the trigger for a rebound in an oversold market.
“The main reason for the market jump is that selling pressure had been exhausted after the market fell so much.”
Gains in value, across Hong Kong, Shenzhen and Shanghai over the week are approximately $1 trillio