Hedge funds and other professional investors are betting that China's economy will successfully reopen and return to a pre-pandemic “normal” after the country ended most "Zero Covid" controls, according to a report by CNBC.

Hedge funds and other professional investors are betting that China's economy will successfully reopen and return to a pre-pandemic “normal” after the country ended most "Zero Covid" controls, according to a report by CNBC.

The report cites data from Morgan Stanley as revealing that since the start of November, hedge funds have been consistent net buyers of China equities in eight of the past 10 weeks. The buying spree has been such that recently acquired positions equate to 70% of the total sold in the the first ten months of last year.

And according to Morgan Stanley, since November, 80% of equity acquisition have come from hedge funds adding long positions, with short covering accounting for the remaining 20%.