The country’s stocks are up 50% since officials eased Covid restrictions. Alibaba, Yum China, and other names stand to gain.
Talk about a comeback. As China abandons policies that stifled economic growth for three years, its stocks have staged an extraordinary rally—up more than 50% since October. This could be just the beginning. Money managers say a broad range of stocks could keep climbing throughout this year.
The catalyst is clear: Policy makers in the world’s second-largest economy are pulling out the stops to revive the economy and get its 1.4 billion people spending more, after three hard years of stringent Covid restrictions and harsh crackdowns on technology and other industries. Beijing has completely reversed its zero-Covid policy and has begun loosening regulations on business. Up next: more stimulus to stabilize the residential property market.