China Stocks Plunge as Xi Offers No Respite From Covid Lockdowns

  • Benchmark CSI 300 Index erases almost all its mid-March rally
  • Leverage, turnover, outflows all point to cautious sentiment
WATCH: Xi talked about the pandemic, the global economy, and the government’s pledge to further open its economy.Source: Bloomberg
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Chinese stocks extended this week’s rout as traders fretted over the economic fallout from the nation’s Covid-Zero strategy, with lower-than-expected policy stimulus adding to their disappointment.

The CSI 300 Index slumped 1.8% on Thursday -- capping a fifth day of losses -- as President Xi Jinping defended China’s lockdown-dependent approach to fighting the pandemic in a speech at the opening ceremony of the Boao Forum for Asia.