China Tourism Companies Rise on Government Support

July 27 (Bloomberg) -- Chinese tourism companies advanced in Shanghai and Shenzhen trading after the government announced plans to offer financial support to the industry.

China Travel International Investment Hong Kong Ltd. surged 6.9 percent to HK$1.85 in Hong Kong trading, the most in eight months. Guilin Tourism Corp., which takes visitors to the karst mountains of southern China’s Guangxi province, rose 1.4 percent to 10.19 yuan in Shenzhen trading, while Emei Shan Tourism Co. rose 3.8 percent.

Financing support will be extended to tourism companies and projects by setting reasonable loan periods and rates, the State Council, the nation’s cabinet, said in a statement on a government website. Companies will also be encouraged to sell bonds and shares to raise funds, it said.

Tourism companies with foreign ownership or investment will be allowed on a trial basis to operate tours for Chinese citizens traveling outside the country, the statement said.

Beijing Jingxi Tourism Development Co. rose 1.3 percent to 13.84 yuan and Huatian Hotel Group Co. increased 1 percent.

To contact the reporter on this story: Wendy Leung in Hong Kong at wleung12@bloomberg.net

To contact the editor responsible for this story: Frank Longid at flongid@bloomberg.net