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


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 Friday afternoon trade, the Hang Seng China Enterprises Index 160462,
advanced 7.6%, while the city’s benchmark Hang Seng HSI index,
jumped 7.1% to 17221.43, recovering to levels last seen a month ago. 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. 601111,
China Southern Airlines Co. 600029,
and China Eastern Airlines Corp. 600115,
added 2.2% to 5.1%, while travel retailer China Tourism Group Duty Free Corp. 601888,
rose 7.1%.

Broader consumer-related sectors also strengthened on hopes that less stringent rules could help revive consumption. E-Commerce Platforms Alibaba Group Holding Ltd. baba,
+ 7.60%

and Inc. JD,

rose 11% and 16%, respectively, while restaurant operator Haidilao International Holding Ltd. 6862,
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]


Source link

Please disable your adblocker or whitelist this site!