Chinese stocks jump, yuan firms, as cities relax COVID curbs

Chinese stocks rose on Monday as traders welcomed the ongoing easing of COVID-19 containment measures across the country.

The Exchange Square Complex, which houses the Hong Kong Stock Exchange in China's Hong Kong Special Administrative Region, July 13, 2022. (Photo: CFP)

Hong Kong's Hang Seng index rose 4.51 percent, leading gains in the region, with the Hang Seng Tech index rising 9.27 percent. The Shanghai Composite Index jumped 1.76 percent, while the Shenzhen Composite Index climbed 0.88 percent.

The Chinese yuan firmed to its strongest level against the dollar in almost three months, breaking below the 7 per dollar level for the first time amid the broad market rally.

Investor sentiment has picked up in recent days, as China's major cities continue to optimize COVID-19 response measures. Analysts at Morgan Stanley upgraded their recommendation for Chinese stocks to overweight on Sunday after keeping an equal-weight stance for nearly two years.