The biggest funeral and service and cemeteries operator in China is seeing its business go up tremendously. As a result, the share prices for the company are also moving in the upward direction.
Fu Shou Yuan International Group is a major operator of cemeteries being ranked the largest in China. The company is listed through the Hong Kong stock exchange and its shares are spiking recently.
The Funeral Company’s Shares have Spiked
The data shows that the share prices for Fu Shou Yuan have spiked recently and it is due to the rising COVID-19 cases.
The coronavirus outbreak is persistent in China and the situation is not coming back to normal at all. While the entire country is mourning, the funeral company’s business is thriving.
The reports confirm that the share prices hit by Fu Shou Yuan are in the highest territory the company has ever hit.
The company has been operational since 1994 but it went public back in 2013. After the initial pump, the share prices for Fu Shou Yuan remained in the lower trading zone.
COVID Cases are Rising in China
However, as the year 2020 began and the COVID-19 outbreak became a pandemic, the death toll rose tremendously in China. As a result, the share prices for the company successfully hit their all-time highs.
After that, the Chinese jurisdiction saw a lowering in COVID-19 cases almost throughout the year 2021. The company then went into the background as its shares were no longer attractive.
With China again getting pushed into the worst COVID-19 situation, the company’s shares have emerged in the Hong Kong stock market.
As China is still struggling with another major wave of rising COVID-19 cases, the death toll due to infections is also rising.
This is when the shares of Fu Shou Yuan started to gain more attraction in the Hong Kong stock market.
Fu Shou Yuan’s Share Price Performance
With the situation growing worse, the company’s shares have recorded a significant spike. So far, the share prices for the funeral company have hit the highest trading level for the year 2022.
The report shows that the share prices for Fu Shou Yuan have reached a high of 7.04 Hong Kong dollars per share.
A further look into the history of Fu Shou Yuan’s shares shows that in the past two months, the company’s shares have surged by 80%.
In the same period, the Chinese government announced that they had lifted the lockdowns. The business in China had been hit badly by the rising COVID cases.
The business hubs in the country were completely closed and the citizens were angry with the day-to-day test measures for infection checking.
Therefore, the country decided it would be wiser to reinstate the markets and then control the virus outbreak in a smart manner.
Unfortunately, the problem is too difficult to handle and with every passing day, the number of infectious cases is rising. The death toll is also rising and in the past couple of months, the figure has surged.
As the situation has gotten worse, the number of death cases has continued rising.
Although the country initially tried to stop the publication of the correct figures the funeral company’s share price surge is a confirmation of the death toll rising.
If we rule out the past couple of month stock price performance of Fu Shou Yuan, then it would be a loss.
However, the past couple of months has made a huge difference for the funeral company. Prior to the pump, the year-to-date performance of Fu Shou Yuan’s stocks was 40% negative.
With the company’s share prices rising by 80% in the past couple of months, its year-to-date share price growth is 15% positive. If the outbreak is not controlled in China the company’s stocks will continue surging.