Investors are shifting into Chinese stocks on bets widespread protests against the country’s Covid-19 policies will prompt President Xi Jinping to accelerate reopening of the world’s second-biggest economy.

A rush of buying from offshore investors in China’s mainland stock market and outsize gains across the country’s equity benchmarks on Tuesday signalled a sharp turnround in market sentiment after a sell-off at the start of the week led global markets lower.

The CSI 300 index of large and actively traded Shanghai- and Shenzhen-listed stocks rose 3.1 per cent and Hong Kong’s Hang Seng China Enterprises index gained 6.2 per cent, with both gauges more than reversing losses from the previous day. The gauges are up 9.7 per cent and 26.3 per cent respectively for the month of November.