Long-suffering Chinese stocks, such as those of pharmaceuticals, breweries, and funeral services are enjoying the ride on China’s COVID exit wave. 

As reported by the Financial Times, a number of Chinese pharmaceutical companies have recently been among the top performers on the stock exchanges in Hong Kong, Shanghai, and Shenzhen.

Mainland China-listed shares of pharmaceutical companies Guangzhou Baiyunshan Pharmaceutical and Hualan Biological Engineering increased by more than 10% over the past five trading days while Shanghai Fosun Pharmaceutical saw 7% growth. This comes as expectations for fever medicine and other drugs booms.

Similarly, an 11% increase within the same period was seen in stocks of Shijiazhuang Yiling Pharmaceutical, which produces the government-endorsed herbal treatment Lianhua Qingwen.

Comparatively, the CSI 300 index of equities listed in Shanghai and Shenzhen experienced a 0.3% drop.

Shanghai-based Fu Shou Yuan International, China’s top funeral services provider and seller of burial plots, is also enjoying the ride. Its Hong-Kong listed stock rose 6% from a week ago and 60% since late October.

Analysts claimed that the company had struggled for much of the past year. People were holding on to their loved ones’ ashes due to travel restrictions while waiting for a reopening.

Other top performers include low-cost carrier Spring Airlines, national carrier Air China, and air purifier manufacturer Midea since they benefit from the removal of travel restrictions.

According to economist Rory Green of the research group TS Lombard, the end of “zero-COVID” was “an increasingly crowded trade” and “a better bet” might be positioning for a post-COVID economy.The Wall Street Journal doubted the situation, saying that “China’s stock rally is still vulnerable.” The extent of the rally will depend on whether China’s reopening revives the real estate industry and how bad its COVID exit wave turns out to be.

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