Shares of the Chinese funeral home rise as Covid infections skyrocket

Workers in protective gear handle a coffin and coffin case at the Dongjiao Funeral Parlor in Beijing, China, Monday December 19, 2022, which is reportedly intended for the treatment of Covid deaths.

Bloomberg | Bloomberg | Getty Images

Hong Kong-listed shares of China’s largest cemetery operator and undertaker rose to their highest level in more than a year as the country grapples with a wave of Covid infections.

Shares in Fu Shou Yuan International Group hit a 2022 high of HK$7.04 per share on Friday – after rising about 80% in two months – as the country abruptly ended most of its Covid control measures and the case numbers increased.

Read more about China from Health & Fitness Journal Pro

Shares in Fu Shou Yuan International Group are down nearly 40% in November 2022, but they’re now on track to gain 15% year-to-date.

The company, which has a market cap of more than $2 billion, debuted in 2013 with backing from the Carlyle Group and hedge fund firm Farallon Investors.

Carlyle co-founder William Conway had visited Shanghai’s Fu Shou Yuan main cemetery with a group of executives in December 2010 before agreeing to buy $25 million worth of stock before the company went public stock market went.