Optimism in China after Covid-Zero Policy Rollback

Note how optimism about the Chinese Stock Market rocketed following rumors (and then reality) of Covid Zero policy roll back.

Behavioral finance research shows that relief from financial fear leads to - unexpectedly - excessive risk-taking, accounting for this “COVID relief rally.”

The optimism chart was developed using a z-score of our Chinese stock market optimism index, derived from millions of news and social media comments in 13 languages, over the course of 2022.