By Scott Kanowsky
Investing.com -- Shares in European luxury firms moved higher after China said that it will slightly relax some of its COVID-19 rules for overseas travelers and close contacts to infected cases.
Companies known for their high-end brands popular with Chinese shoppers, including Burberry Group PLC (LON:BRBY), Kering SA (EPA:PRTP), LVMH Moët Hennessy Louis Vuitton SE (EPA:LVMH), and Hermes International SCA (EPA:HRMS), saw their stock prices are all in the green in the wake of the announcement.
Meanwhile, Switzerland's Compagnie Financière Richemont S.A. (SIX:CFR), which also posted better-than-expected sales and profit in its latest results despite COVID-induced sluggishness in Chinese demand on Friday, was trading near the top of the pan-European STOXX 600.
The move by Beijing marks the first easing of China's ongoing zero-COVID strategy since President Xi Jinping was reaffirmed as party leader for a third term last month.
Under the new policy, passengers arriving in the country, as well as people who have been in close contact with a COVID case, will have their mandatory quarantines shortened by two days.