Financial markets bet on an end to China’s “zero-covid” policy

to abandon its struggle with covid-19? Judging by recent moves in the markets, you might think so. Rumours that China had assembled a reopening committee inspired a big rally in the country’s shares, and even the price of copper in the early days of this month. A social-media message that helped circulate the idea was subsequently dubbed the “trillion-dollar” tweet. If nothing else, the market movements were a reminder of the costs of China’s , which requires mass testing and frequent lockdowns to stamp out the disease. Few policies are so economically damaging that mere rumours of their repeal can create so much wealth so quickly. A reopening could lift the value of China’s shares by 20% or $2.6trn, according to Goldman Sachs, a bank. Because China is the only big economy still prone to lockdowns, it is the last opportunity for investors to profit from a reopening rally. These tend to happen early and fast, which is why investors risk jumping the gun.