(Yicai Global) June 28 -- Travel-related stocks surged as China relaxed quarantine measures for inbound travelers after bringing its Covid-19 flareup under control.

In Hong Kong, Trip.Com Group [HKG: 9961] surged 16.5 percent to close at HKD230.40 (USD29.35), while chain hotel operator Huazhu Group [HKG: 1179] jumped 13.5 percent to HKD32.90.

In the Chinese mainland, Xinjiang-based Western Regions Tourism Development [SHE: 300859] hit its 20 percent daily limit to end at CNY33.62 (USD5.03), and Zhejiang Ssaw Boutique Hotels [SHE: 301073] rose 13.2 percent to CNY70.30.

The State Council, China’s cabinet, today halved the quarantine period for international travelers to seven days of mandatory quarantine plus three days of health monitoring at home, from the previous 14 days and 7 days. The policy for twice-removed contacts of infected people was also changed to seven days in quarantine and home isolation from seven days just in quarantine.

Some places in China, including Huzhou in Zhejiang province, Nanjing in Jiangsu province, and Wuhan in Hubei province, had already halved the quarantine time for inbound travelers this month.

The changes reflect the shorter incubation period of the omicron variant, according to civil aviation sector insider Lin Zhijie. Shorter quarantines will make international travel easier and spur the aviation market’s recovery, he said, adding that it also means quarantine hotels can serve more inbound passengers, further preparing for the resumption of international flights.

International flights, which China has tightly controlled since Covid-19 broke out in 2020, are gradually restarting. China Southern Airlines resumed its Wuhan-Istanbul route this month and is planning to restart its Shenzhen-Moscow and Guangzhou-Delhi services next month. Hainan Airlines restarted its Chongqing-Rome flights on June 23.

Editors: Dou Shicong, Peter Thomas