China Stocks Wobble on Global Growth Concerns

The Shanghai Composite and Shenzhen Component indexes struggled for direction on Thursday as investors weighed optimism stemming from China’s shifting policy on Covid against growing fears of recession globally.

Still, the benchmark indexes hovered near their highest levels since mid-September after China scaled back nationwide Covid restrictions further, including letting people travel between different parts of the country even without negative virus tests and stopping local officials from locking down large areas.

The 10 new measures issued this week followed 20 measures announced last month as Chinese authorities faced mounting pressure to end its strict zero-Covid policy that has weighed heavily on the economy.

Mainland stocks traded mixed on Thursday, with new energy, financial and consumer stocks posting strong gains, while technology and healthcare stocks mostly declined.