Expectations for improved relations with China due to visa-free entry… Travel and airline stocks soar (comprehensive)

Expectations for improved relations with China due to visa-free entry… Travel and airline stocks soar (comprehensive)

(Seoul = Yonhap News) Reporter Jo Seong-heum = As China allowed visa-free entry for our citizens, stock prices of travel and airline companies soared on the 4th.

On this day, Chamjoheun Travel [094850] and Yellow Balloon [104620] closed at 6,700 won and 5,780 won, respectively, which were within the price limit.

Modutour 080160 and Hanatour 039130 also rose significantly.

Airline stocks were also strong, with Korean Air 003490 hitting a 52-week high of 24,500 won, up 3.81% during the session.

Jin Air 272450 , Jeju Air 089590 , T’way Air 091810 , Air Busan 298690 , Asiana Airlines 020560 , etc. all rose simultaneously.

On the 1st, the Chinese Ministry of Foreign Affairs announced that it would implement a “unilateral visa-free policy” until December 31st of next year for holders of ordinary passports from nine countries: South Korea, Slovakia, Norway, Finland, Denmark, Iceland, Andorra, Monaco, and Liechtenstein.

Accordingly, holders of ordinary Korean passports do not need to obtain a visa when visiting China for up to 15 days for business, travel/tourism, visiting relatives/friends, or transit purposes.

This is the first time that China has included South Korea in its visa-free travel program, and the travel and aviation industries expect that China travel will increase as the time and cost for issuing visas will be reduced.

Lee Kyung-min, a researcher at Daishin Securities [003540], said, “China has unusually allowed visa-free entry for Koreans, which has led to significant expectations for improved relations with China,” and “Related stocks have risen all at once, reflecting expectations for a favorable wind from China.”

Source: Yonhap News