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Luxury brands breathe sigh of relief as China eases restrictions

By Don-Alvin Adegeest

31 May 2022

Business

Image: Shanghai via Pexels

Luxury brands are breathing a sigh of relief as China’s strict Covid restrictions are set to ease. Europe’s stock exchanges responded positively, with luxury stocks recovering after a dip since March.

China’s top tier fashion cities, including Beijing and Shanghai, are set to see a loosening of its stringent lockdown rules amid falling infection rates. Many residents have been forced to stay at home for the past two months, which has seen Europe’s luxury retailers close their stores and see local revenue losses.

Shares in LVMH and Kering on Monday rose 2.56 percent and 3.33 percent, while Burberry, Moncler and Brunello Cucinelli also saw significant increases at 2 percent, 4.18 percent and 3.61 percent respectively. Hermès closed the day with a 3.94 percent increase.

Japan this week also announced it would lift visitor restrictions, confirming it would allow up to 20,000 tourists per day to enter the country.

CHINA
Luxury
LVMH