CC - Chemours Tronox jump on hopes for China's Covid reopening

Chemours ( NYSE: CC ) and Tronox Holdings ( NYSE: TROX ) were among the companies that rose Friday on the possibility that China is weighing whether to relax its strict Covid-19 policies.

Chemours ( CC ) jumped 9.7% to a seven-week high while Tronox ( TROX ) rose 9% to a one-week high. Both companies make chemicals such as titanium dioxide, which is used in industrial and commercial products such as paints, coatings and plastics.

The key catalyst for the move appeared to be a speech by Zeng Guang, former chief scientist for the Chinese Center for Disease Control and Prevention, who said China’s zero-Covid mandate will see significant changes, The Wall Street Journal reported, citing people familiar with the matter. He spoke at a conference hosted by Citigroup.

Zeng said the peak rate for coronavirus testing in China had passed and 90% of tests will be eliminated, the Journal reported. He said border between Hong Kong and mainland China will reopen in the first half of 2023, followed by the opening of the border between the mainland and other countries, according to the newspaper.

A transcript of Zeng’s speech was shared on social media, and likely spurred a more than 5% gain for the Hang Seng Index on Friday.

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