The values of the luxury sector are once again displayed in the very best places of the charts of increases this Friday morning. LVMH, Hermès International and Kering rose by 2 to 3.1%, with a strong influence on the 0.8% rise in the Cac 40 given their significant weight in the flagship index.
China is the future of luxury according to Boston Consulting Group
There is still talk in the markets of a potential exit from China’s zero Covid policy, the same rumor as a few days ago. “What we assume is that [the country] will model its reopening on the model of Hong Kong”, indicated this morning to Bloomberg Jack Siu, director of Greater China investments at Credit Suisse, before relativizing: “To reopen completely, it will take at least another nine months. »
Rumors on Luxury in China
“Not aware”, “not surprised”
the luxury sector had already taken advantage of rumors circulated on social networks and relayed by the same news agency, but not confirmed, according to which the Chinese authorities would consider ending their zero Covid policy. Chinese Foreign Ministry spokesman, however, reacted by saying he was “not aware” of a government committee tasked with assessing ways to stop such health restrictions still. in force in the country.
“I am not surprised by this rumor circulating online about a conditional reopening, reacted the same day, Liu , Top level Excecutice at China Power Asset Management. The Council of State could wait for the deliberation of the team of experts to determine the next step to be taken. The market is also ready to buy on any indication that an inflection point is in sight for the zero Covid policy”.
At the end of September, Hong Kong announced, like Japan, the lifting of the mandatory hotel quarantine for anyone arriving from abroad, after a total isolation of more than two and a half years. The only condition for this is that travelers submit to a PCR test when arriving in the territory, without being able to go, however, to bars or restaurants during the first three days of their stay. China is now the last country in the world to apply this quarantine period. It also imposes broad confinements as soon as positive cases appear in any region.
According to other sources, still relayed by the Bloomberg agency, the first stage of this reopening would include an increase in the number of flights to China while, for the moment, certain air routes may be stopped for one to two weeks. in the event of detection of positive Covid cases among travellers. These same restrictions were stopped in July in Hong Kong. The number of international flights could thus more than double between October and March. The second stage would aim to relax the measures put in place when new cases are discovered, before a third, which would consist of a return to normal air traffic. However, no timetable seems fixed.
