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China’s assets are showing signs of a revival after a run of losses, and confidence is growing that the rebound isn’t a dead cat bounce.

A salvo of rescue measures in recent months has fueled the biggest upturn in Chinese equities since Beijing scrapped its Covid restrictions in late 2022. Liquidity in bonds and stocks has improved, currency volatility is falling and credit spreads have tightened — all pointing to a recovery that may prove to be more lasting than previous rallies.

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