It wasn't the strongest denial

Chinese stocks ripped higher today.

Here was the original rumor, which started in Chinese:

Heard that “Reopening Committee” has been formed & led by Wang Huning, Politburo Standing Member. The Committee is reviewing COVID data from US/HK/SG to assess various reopening scenarios, target 03/2023 reopen.

This was followed by a Bloomberg report, which wasn't the strongest denial:

Chinese Foreign Ministry spokesman Zhao Lijian said he’s “not aware of what you mentioned,” when asked whether the government formed a committee to assess ways to exit covid zero.

Now China isn't the UK, so not everything is leaked before it's implemented.

Two things are important here:

1) This is a taste of what's to come when China does reveal some kind of reopening: the US dollar US Dollar The US dollar, (symbol $, code USD) is the fiat currency of the United States of America (USD) and the most widely traded currency globally. It was introduced into the US in the late 18th Century, with paper notes not being distributed until the following century. The US dollar, also informally known as the greenback, is the world’s most foremost reserve currency, due in large part to the importance of the US economy on the world stage. Once backed by gold (in the 1900’s), the USD is now a purel The US dollar, (symbol $, code USD) is the fiat currency of the United States of America (USD) and the most widely traded currency globally. It was introduced into the US in the late 18th Century, with paper notes not being distributed until the following century. The US dollar, also informally known as the greenback, is the world’s most foremost reserve currency, due in large part to the importance of the US economy on the world stage. Once backed by gold (in the 1900’s), the USD is now a purel Read this Term is softer, equities Equities Equities can be defined as stocks or shares in a company that investors can buy or sell. For example, when you buy a stock, you are purchasing equity, thereby becoming a partial owner of shares in a specific company or fund.Equities do not pay a fixed interest rate, and as such are not considered guaranteed income. Consequently, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling p Equities can be defined as stocks or shares in a company that investors can buy or sell. For example, when you buy a stock, you are purchasing equity, thereby becoming a partial owner of shares in a specific company or fund.Equities do not pay a fixed interest rate, and as such are not considered guaranteed income. Consequently, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling p Read this Term much strong (+5.2% in Hong Kong) and oil up 2% in a classic risk-on bid. I don't discount what happened in Australia either with the RBA doing just 25 bps. Treasury yields are down around 14 bps across the curve today and that's not exactly a reopening trade.

2) There is some talk that China will never reopen but that's tough to believe. A much better bet is that it's comng and when the market knows something is coming, it can be surprisingly patient. So whether that's in Q1, Q3 or 2024, it's coming.

Update: CNBC China correspondent Eunice Yoon made some interesting points about the report:

1. It came from social media
2. The guy who is purported to lead it is the chief propagandist, not an economist or scientist (Wang Huning)
3. There's nothing in the Chinese media about the rumor or the denial, which she said is a sign that is very sensitive