This is a message worth $450 billion.
It’s a screenshot that began circulating on WeChat yesterday and then Twitter and claims that China’s top politburo official Wang Huning will lead a plan to reopen in March.
It’s unverified, unsourced and nothing more than words on a white background.
The Chinese stock market has gained at least $450 billion since they began circulating.
Are they true? No one knows but they’re a beautifully-crafted rumor with enough plausibility and detail to get market participants to buy into something that everyone eventually expects to happen anyway.
The Chinese foreign ministry yesterday said it was “not aware” of any plans but that wasn’t the strongest denial. They followed that up with a statement saying that China is committed to covid zero but that’s also doesn’t debunk the idea that there will be a shift in the future.
Ultimately, I still think it’s an untradeable rumor but it is a demonstration of what will happen when China reopens. It’s also another good example of how important rumors are in today’s markets and how they are formed and spread with technology.
Bloomberg has more on the rumors from China.
/CNH