Hopes that China is on the verge of easing its strict Covid rules have prompted both PineBridge Investments and Man Group to up their holdings in Chinese equities, according to a report by Reuters.

Hopes that China is on the verge of easing its strict Covid rules have prompted both PineBridge Investments and Man Group to up their holdings in Chinese equities, according to a report by Reuters.

Chinese markets and the yuan rose sharply last week on the back of rumours that and news reports hinting at both a relaxation of lock-down rules and an improvement in US-China relations.

The report cites Hani Redha, a global multi-asset portfolio manager at US firm PineBridge, has saying that the market moves and his firm's response, which has seen it increase its China exposure to "higher levels", were motivated by hopes that China's 'reopening' would boost both the economy and Chinese stocks.

Luke Ellis meanwhile, CEO of Man Group, also said recently that the UK fund management group is planning to expand its presence in China - including bets on local equities - once Covid restrictions are eased.