President Xi’s Visit to Wuhan Spurs Surge in City’s Stocks

(Bloomberg) -- Companies with sizable operations in Hubei province jumped Tuesday, as President Xi Jinping made his first visit to the city since it became the core of the now-global coronavirus outbreak.

Among those posting the maximum 10% gain within minutes of the official Xinhua News Agency announcing Xi’s arrival to Wuhan were Hubei Guochuang Hi-tech Material Co., whose operations include real-estate services, and Wuhan Department Store Group Co. Shares of both companies hit their highest level in more than a month while water-services firm Wuhan Sanzhen Industry Holding Co. was poised for a near-three-year best in jumping the daily limit.

As Wuhan emerged as the center of the outbreak, investors started dumping stocks with links to the area before the Lunar New Year holiday. Authorities sealed off the provincial capital in an effort to contain the virus’ spread.

Xi’s visit could signal that economic activity may soon be restored as the number of new coronavirus cases continue to drop. Sanan Optoelectronics Co., which has invested in a plant in Wuhan, rose as much as 7.7% after sliding 9.8% on Monday. Langold Real Estate Co., which opened down the 10% daily limit, swung to a 10% gain by early afternoon.

After Tuesday’s report of Xi’s visit, Hubei’s government said it will allow some residents to travel to lower-risk areas within the province.

To contact Bloomberg News staff for this story: April Ma in Beijing at ama112@bloomberg.net

To contact the editors responsible for this story: Sofia Horta e Costa at shortaecosta@bloomberg.net, Kevin Kingsbury, David Watkins

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With assistance from Bloomberg