China Tourism Stocks Jump After Curbs Eased on Trains Running Between Provinces
Shi Yi
DATE:  Jul 08 2022
/ SOURCE:  Yicai
China Tourism Stocks Jump After Curbs Eased on Trains Running Between Provinces China Tourism Stocks Jump After Curbs Eased on Trains Running Between Provinces

(Yicai Global) July 8 -- Shares of Chinese tourism companies rallied after the government announced a reopening of cross-provincial train services for tourists after a nine-month suspension.

Fukang-headquartered sightseeing tour operator Western Regions Tourism Development [SHE: 300859] closed 2.5 percent higher after surging 9.5 percent intraday.

Beijing-based travel agency Caissa Tourism Group [SHE: 000796] closed 0.8 percent higher after rising 5 percent earlier.

Other soaring stocks included Yunnan province-based cablecar company Yulong Tourism, Dalian-headquartered theme park operator Shengya Tourism Holding, and Guangzhou-based hotel manager Lingnan Group Holdings.

Special tourist train services between provinces can be resumed as Covid-19 outbreaks are increasingly contained, the culture and tourism ministry announced yesterday. Last October, such links were frozen due to the pandemic.

Consequently, tourist trains from Beijing to the Xinjiang Uygur Autonomous Region and other routes will be running through the summer holiday, The Paper reported.

Common transport options used by domestic travelers are restored around the country. Since last month, Shaanxi and Hubei provinces as well as the Ningxia Hui Autonomous Region have been rejuvenating interprovincial tourism. The number of tourists booking tickets for night tours in scenic spots during the summer vacation in the past two weeks jumped over 10 times from the previous two weeks, per statistics from Trip.Com Group.

Factors restricting tourism have been changing in a good way, so a recovery in cross-provincial tourism is worth looking forward to, Citic Securities said in its latest research report.

A period of two months following the summer vacation season will be a rare opportunity for the tourism sector to rebound this year, and the domestic tourism market will have a periodic recovery as the anti-Covid-19 policies are eased, Wanlian Securities noted.

Editors: Shi Yi, Emmi Laine, Xiao Yi

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Keywords:   Tourism