Global Times suggests China could soon abandon zero-Covid policy

Dhwani Mehta FXStreet

Risk sentiment is witnessing a fresh boost, as investors assess the latest tweets from Hu Xijin, a commentator at the highly-influential Chinese state media, Global Times.

Hu tweeted: “The new Omicron variant is spreading fast, pushing adjustment in COVID response in many parts of China. China's current rate of severe cases is about 0. 025%. Most Chinese people are no longer afraid of being infected. China may walk out of the shadow of COVID-19 sooner than expected.”

Another tweet read: “Protests took place in many places in China over the past weekend. With the relaxation of the epidemic prevention and control measures, public sentiment will soon calm down. I can give an absolute prediction: China will not become chaotic or out of control.”

This set of tweets suggests that China could soon abandon its zero-Covid policy, boosting the S&P 500 futures 0.30% higher while the AUD/USD pair recaptures 0.6700, up 0.80% on the day.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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