Chinese stocks soar after underperforming due to Covid-19 spike

• Chinese Shanghai composite rose 3.48% at 3,170.71

• Shenzhen component climbed 4.019% to 12,000.96

Chinese stocks surged on Wednesday afternoon after experiencing a fall the following day due to spiking Covid-19 cases, also lifting the Asian shares.

Chinese Shanghai composite rose 3.48% at 3,170.71 while the Shenzhen component climbed 4.019% to 12,000.96.

Mainland China and Hong Kong shares tumbled on Tuesday as the country witnesses exponential rise in Covid-19 cases.

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Hong Kong’s Hang Seng index closed 9.08% higher at 20,087.50. Chinese tech companies’ shares soared in Hong Kong as Tencent rose 23.15%, Alibaba soared 27.3% and NetEase jumped 23.4%. 

The gain in Chinese stocks comes after a report by the country’s state media saying U.S. and Chinese regulators are working on a cooperation plan on U.S.-listed Chinese stocks.

After worries around Chinese stocks delisting from the U.S., Vice Premier Liu He would chair a financial stability meeting on Wednesday, according to the report.

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Asian stocks

Other Asian stocks including Japanese Nikkei 225 also surged 1.64% closing at 25,762.01 while the Topix index rose 1.46% to 1,853.25.

In South Korea, Kospi gained 1.44% and Australia’s S&P/ASX 200 rose 1.1% on the day.

Picture Credits: Reuters