Chinese stocks continued to be volatile in morning trading on Thursday following a big rally on Wednesday. Investors have been questioning the state of the Chinese economy after rising COVID cases prompted the Chinese Government to impose stringent lockdowns.
The Chinese people have voiced their opposition to these lockdowns through a string of protests. These lockdowns have also hampered manufacturing activities in the country.
However, there are signs that these lockdowns could ease up soon. Reuters reported on Thursday that China could reduce mass testing for COVID-19 in the coming days and could lift or ease COVID-19 quarantine protocols.
Indeed, some Chinese cities have been lifting lockdowns in recent days, according to the report.
Shares of Alibaba (BABA) are down in morning trading today and have dropped by more than 29% in the past year even as the Chinese e-commerce giant delivered mixed Q2 results.
Chinese EV majors including XPeng (XPEV), Li Auto (LI), and NIO (NIO) also declined in morning trading even as barring XPEV, Li and NIO reported remarkable vehicle delivery numbers in the month of November.
Another Chinese e-commerce major, JD.com (JD) declined in morning trading. The retailer reported strong results in Q3.
The SPDR S&P China ETF (GXC) has lost more than 25% in value in the past year.
