China markets start 2023 with a bang as Covid policy shift hastens

Beijing has pledged to expand fiscal spending as part of efforts to boost economic growth

Chinese shares are off to a strong start in 2023, putting behind a dismal year as fears of isolationist policies give way to signs of an economic powerhouse turning friendlier to both the outside world and its own entrepreneurs.

The MSCI China Index has risen 5.3% since trading resumed on Tuesday, marking the best start to any year since 2009, after losing nearly 24% in 2022. Leading the rally were debt-laden property developers and technology firms emerging from two years of a regulatory storm. 

The world’s second-biggest stock market is looking like an investor darling again, as optimism about the eventual benefits