Shares in Chinese and China-related stocks, including specialist UK-listed investment trusts, have risen for several days on market talk Beijing could end its zero-tolerance strategy on the Covid virus in early 2023.

The official line is the government has no intention of changing course as ‘previous practices have proved our prevention and control plans and strategic measures are completely correct’.

Moreover, the Shanghai Disney Resort has just been shut after a single visitor was found to have coronavirus.

Yet that hasn’t stopped investors chasing up Chinese consumer-related stocks such as car-maker Geely Automotive (175:HKG) and sportswear firm Li Ning (2331:HKG). 

Heavy buying has also pushed up shares of China-focused investments trusts such as Abrdn China (ACIC), Baillie Gifford China Growth (BGCG), Fidelity China Special Situations (FCSS) and JPMorgan China Growth & Income (JCGI).

Nick Yeo of Abrdn China believes Covid restrictions are unlikely to be lifted before the Chinese New Year in late January ‘due to the onset of winter, low vaccination rates among the elderly and a lack of intensive care facilities in the event of a nationwide epidemic’.

Still, Yeo believes the economy will bounce back rapidly once China does reopen with consumer stocks most likely to benefit.

Investors will get a chance to gauge the strength of consumer demand themselves on 11 November with Singles Day, the biggest one-day shopping event in the world.

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