Market news
08.01.2023, 23:51

China reopens borders in final farewell to zero-Covid policy

Travelers streamed into China by air, land and sea on Sunday, many eager for long-awaited reunions, as Beijing opened borders that have been all but shut since the start of the COVID-19 pandemic, reported Reuters.

Key quotes

After three years, mainland China opened sea and land crossings with Hong Kong and ended a requirement for incoming travelers to quarantine, dismantling a final pillar of a zero-COVID policy that had shielded China's 1.4 billion people from the virus but also cut them off from the rest of the world.

Long queues formed at the Hong Kong international airport's check-in counters for flights to mainland cities including Beijing, Tianjin and Xiamen. Hong Kong media outlets estimated that thousands were crossing.

Investors hope the reopening will reinvigorate a $17-trillion economy suffering its slowest growth in nearly half a century. But the abrupt policy reversal has triggered a massive wave of infections that is overwhelming some hospitals and causing business disruptions.

The border opening follows Saturday's start of "Chun Yun", the 40-day period of Lunar New Year travel, which before the pandemic was the world's largest annual migration, as people returned to their hometowns or took holidays with family.

Some 2 billion trips are expected this season, nearly double last year's movement and recovering to 70% of 2019 levels, the government says.

China on Sunday resumed issuing passports and travel visas for mainland residents, and ordinary visas and residence permits for foreigners. Beijing has quotas on the number of people who can travel between Hong Kong and China each day.

Jiao Yahui, an official from the National Health Commission, said in an interview published by state broadcaster CCTV on Sunday that demand for emergency and critical care in China's large cities had likely peaked but was rising fast in small and midsize cities and rural areas due to the Lunar New Year travel.

Market implications

The news appeared to have favored the market sentiment and the prices of commodities and Antipodeans.

Also read: Gold Price Forecast: XAU/USD grinds higher ahead of United States Inflation

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