SHANGHAI, Nov 1 (Reuters) – Major European luxury goods companies with high exposure to China took advantage on Tuesday of a rumor that Beijing plans to ease COVID-19 restrictions in March.
Around 10:20 GMT, LVMH, Hermès and Kering gained 2.82% to 3.77% in Paris. Richemont takes 4.04% in Zurich and Moncler 2.54% in Milan.
Earlier, the mainland China large-cap CSI300 ended the session up 3.58% and the Shanghai Composite Index rose 2.62%.
In Hong Kong, the Hang Seng index jumped 5.23%, after ending the day before at its lowest level since 2009.
According to an unverified note circulating on social networks and relayed on Twitter by the influential economist Hao Hong, a “reopening committee” has been formed by Wang Huning, a member of the Standing Committee of the Politburo of the Chinese Communist Party.
This “reopening committee” would, according to the document, study COVID-19 data abroad to assess various scenarios aimed at easing health restrictions next March.
Asked by the press about this, the Foreign Office spokesman said: “I don’t know where you got that information. I really don’t know anything.”
Linus Yip, chief strategy officer at First Shanghai Group, said the news gives investors an opportunity to buy on the cheap after Chinese stocks fell last month.
“The market has fallen so much. There’s an urge to rebound,” he said. (Shanghai office, French version Laetitia Volga, edited by Sophie Louet)