Why China Southern Airlines Stock Took Flight This Week
China is beginning to scale back its zero-COVID policy, which could lead to Chinese citizens and visitors having more freedom to travel around the country. Shares of China Southern Airlines (NYSE: ZNH) climbed as much as 13% this week, according to data provided by S&P Global Market Intelligence, as investors bet on one of the world's most important aviation markets beginning to normalize.
China has followed a very different path through the pandemic compared to most of the world. The "Great Reopening" that occurred in 2021 in the U.S. and elsewhere following the introduction of COVID-19 vaccines never occurred in China, where government officials have instead relied on lockdowns and strict testing guidance to keep the population safe.
Those policies made travel difficult, if not impossible, but it appears China is beginning to scale back how it handles the virus. The country announced this week that authorities will no longer be able to put whole city blocks on lockdown at the first sign of a positive COVID-19 test in the neighborhood, and that Chinese citizens will not be subject to the same frequency of testing when traveling domestically.
Source Fool.com
