Consumer, travel stocks up as China lifts Covid restrictions

Shares of many consumer and travel related stocks went up sharply after China lifted some restrictions on 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 loosen its testing requirements for people in quarantine.

Cathay Pacific Airways Ltd. 293 rose 5.9% to HK $8.56, on track to close at its highest level since March 2020 when the epidemic swept across the world. The stock has gained 34% this year. China's three major airlines, Air China Ltd. 60111, China Eastern Airlines Corp. 600115 and China Southern Airlines Co. 600029, have advanced between 5.8% and 9.4% in Hong Kong. Trip.com Group Ltd., 9961, surged 22% to HK $240.80, on course for its biggest one-day gain in more than three months. The Shanghai-listed Duty Free Corp. 601888 was up 3.1%. Restaurant stocks were also strengthened. The hot-pot chain operator Haidilao International Holding Ltd. 6862 jumped 9.2% to HK $19.18 and Yum China Holdings Inc. YUMC, 9987, added 3.5%. Hong Kong's benchmark Hang Seng Index HSI, turned positive in afternoon trading and was last 1.0% higher at 22447.10.