Korea Tourism Stocks Jump on Bets for Return of Chinese Visitors
(Bloomberg) -- The years-long disputes between China and South Korea are getting resolved, and analysts at Nomura Holdings Inc. expect Chinese tourists to return en masse to the nation of K-Pop.
That’s a boon for shares of cosmetics producers and travel-related companies. Amorepacific Corp., the maker of beauty products that are popular souvenirs among Chinese women, climbed as much as 6.6% on Monday. Peer Kolmar Korea Co. surged 12%, while travel agency Modetour Network Inc. rallied 7.7%.
Media reports in China said several of its major tour agencies would restart selling five to six tour packages to South Korea, according to a Nomura note Friday. The firm said its research showed Chinese group-package trips are resuming and got confirmation from a major travel agency in the country that its tour companies have started offering services to domestic customers for the upcoming spring festival.
The ties between the two countries soured after the U.S. deployed a missile shield in South Korea in 2017 to protect the nation from its northern neighbor.
Last week, a handful of travel-linked stocks rallied on expectations that relations between South Korea and China may improve, with a possible visit by Chinese President Xi Jinping to Seoul, which would be the first since President Moon Jae-in took office in 2017.
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