Consumer-Related, Travel Stocks Rise After China Loosens Quarantine Requirements

By Clarence Leong

Shares of many consumer- and travel-related stocks rose sharply after news that China will ease some of the restrictions to curb Covid-19 infections that have weighed on the world's second-largest economy for more than two years.

The Chinese government said Tuesday it will shorten the quarantine time for international travelers and those who have come into close contact with Covid-19 patients to 10 days from 21 days. Beijing will also loosen its testing requirements for people in quarantine.

Cathay Pacific Airways Ltd. rose 5.9% to HK$8.56, on track to close at its highest level since March 2020, when the pandemic swept across the world. The stock has gained 34% this year.

China's three major airlines, Air China Ltd., China Eastern Airlines Corp. and China Southern Airlines Co. advanced between 5.8% to 9.4% in Hong Kong.

Travel-booking company Trip.com Group Ltd. surged 22% to HK$240.80, on course for its biggest one-day gain in more than three months. Shanghai-listed China Tourism Group Duty Free Corp. was up 3.1%.

Restaurant stocks also strengthened. Hot-pot chain operator Haidilao International Holding Ltd. jumped 9.2% to HK$19.18 and Yum China Holdings Inc. added 3.5%.

Hong Kong's benchmark Hang Seng Index turned positive in afternoon trading and was last 1.0% higher at 22447.10.

Write to Clarence Leong at [e-mail]

(END) Dow Jones Newswires

June 28, 2022 03:35 ET (07:35 GMT)

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