Chinese travel and consumer stocks rebound as Beijing eases COVID rules | Tech US News

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By Clarence Leong

Shares in Chinese consumer and travel companies gained ground in Hong Kong after Beijing eased some Covid-19 restrictions, improving the outlook for sectors directly affected by the pandemic and the broader economic recovery.

In afternoon trade on Friday, the Hang Seng China Enterprises Index advanced 7.6%, while the city’s benchmark Hang Seng index jumped 7.1% to 17221.43, recovering levels last seen a month The benchmark would mark its biggest one-day gain since mid-March if it closes at current levels.

China’s three major airlines, Air China Ltd., China Southern Airlines Co. and China Eastern Airlines Corp., added between 2.2% and 5.1%, while travel retailer China Tourism Group Duty Free Corp. rose 7.1%.

Broader consumer-related sectors also strengthened on hopes that less stringent rules could help revive consumption. The e-commerce platforms Alibaba Group Holding Ltd. (9988.HK) and JD.com Inc. (JD) rose 11% and 16%, respectively, while restaurant operator Haidilao International Holding Ltd. rose 4.7%.

China said on Friday it will shorten the quarantine period for close contacts of COVID cases and travelers to the country, among other policy tweaks. But the government has also said it will maintain its zero COVID policy.

Friday’s market rally came on the heels of the biggest rally in U.S. stocks in two years, after weaker-than-expected October inflation data raised expectations of less aggressive interest rate hikes by the Federal Reserve .

Write to Clarence Leong at [email protected]

-Clarence Leong

 

(END) Dow Jones Newswires

11-11-22 0221ET

Copyright (c) 2022 Dow Jones & Company, Inc.

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