Shares of China-based funeral company are surging as Covid infections spike


Workers in protective gear handle a coffin and coffin case at Dongjiao Funeral Parlor, reportedly designated to handle Covid fatalities, in Beijing, China, on Monday, Dec. 19, 2022.
Bloomberg | Bloomberg | Getty Images

Hong Kong-listed shares of China’s biggest cemeteries operator and funeral service rose to their highest level in more than a year as the country struggles with a wave of Covid infections.

Fu Shou Yuan International Group stock reached a 2022 high at 7.04 Hong Kong dollars a share as of Friday’s close — having surged about 80% in two months – as the country abruptly ended most of its Covid control measures and saw case numbers surge.

Loading chart…

Despite widespread reports of a spike in Covid deaths that’s straining hospitals and funeral homes, China’s official Covid death toll remains low. Health authorities there re-defined Covid deaths to include only people who die from pneumonia or respiratory failure — a contrast with most other countries, which count any death where Covid was a factor.

Separately, China’s National Health Commission over Christmas weekend announced that it would halt the publication of daily infection numbers.

The stock had seen a continued decline from April 2021 into October, when China widely tightened its virus restrictions after concluding the National Party Congress with an ambiguous stance on the continuation of its zero-Covid policy.

Shares of Fu Shou Yuan International Group were down nearly 40% for 2022 as of November, but they’re now on pace for a 15% year-to-date gain.

The company, with a market cap of more than $2 billion, debuted in 2013 with backing from Carlyle Group and hedge fund firm Farallon Investors.

Carlyle co-founder William Conway had visited Fu Shou Yuan’s main cemetery in Shanghai with a group of executives in December 2010 before agreeing to purchase $25 million worth of shares prior to the company going public.

Products You May Like

Articles You May Like

The current job market is a ‘juggernaut,’ economist says. Here are 6 things to know as a job seeker
Adani losses top $100 billion in the wake of Hindenburg Research report
Bond king Jeffrey Gundlach says he expects one more Fed rate hike
Deutsche Bank smashes profit expectations in fourth quarter as higher interest rates bolster revenue
35% of millionaires say retirement is ‘going to take a miracle,’ report finds

Leave a Reply

Your email address will not be published. Required fields are marked *