Sa Sa Rises in Hong Kong After China Eases Travel Rules to City
Sa Sa International Holdings Ltd. and other retailers rose in Hong Kong on speculation sales may gain from more shoppers traveling to the city after China eased visa restrictions for non-permanent Shenzhen residents.
Sa Sa, Hong Kong’s biggest cosmetics seller, gained 4.8 percent at the 4 p.m. close of trading to HK$9.99, the highest since the shares were listed in June 1997. France’s L’Occitane International SA, a maker of skin-care products, rose 2.5 percent to HK$22.25.
The new rules, which removed the condition that migrant workers in Shenzhen must return to their home provinces to apply for visas, will help about 4 million workers to directly travel to Hong Kong from Dec. 15. The Hong Kong travel industry expects the city to be able to earn an additional HK$5.6 billion ($721 million) per year from the change in laws, the South China Morning Post reported today.
“The new rules will benefit Sa Sa,” said Winnie Fong, an analyst at Haitong International Securities Group Ltd. “Though Sa Sa also has stores in mainland China, products are cheaper in Hong Kong.”
Sa Sa earns as much as 43 percent of its sales in Hong Kong and Macau from mainland customers, Fong said. Last year, 10.6 million mainland tourists visited Hong Kong, according to the Hong Kong Tourism Board.
Luk Fook Holdings (International) Ltd. climbed 9.5 percent to HK$26.45. Joyce Boutique Holdings Ltd., a designer clothing retailer, rose 6 percent to HK$1.06. Chow Sang Sang Holdings International Ltd., a Hong Kong-based jeweler, rose 3.9 percent to HK$19.50.
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