According to Bloomberg on Thursday, citing people familiar with the matter, Chinese authorities are considering a “0+3” policy, in which the requirement to stay in a quarantine hotel or isolation facility would be scrapped as soon as January, and arrivals into the country would instead be subject to three days of monitoring, as part of its drive to phase down its harsh Covid Zero policy. Details are still being sorted out.
DAOL Securities (DAOL) is optimistic about China reportedly dropping quarantine for overseas travelers next month as it will boost sentiment in Thailand’s tourism sector.
Since 2012, China has been taking the top spot as far as providing tourists to Thailand, with about 11 million Chinese visitors arriving in 2019, accounting for 25% of the total.
Therefore, DAOL has named Top Pick stocks as it will reap benefit from China’s cutting quarantine: ERW (BUY/TP: 5.20 baht), BAFS (BUY/TP: 35.00 baht) AOT (BUY/TP: 82.00 baht), AAV (BUY/TP: 3.30 baht), SPA (Bloomberg consensus 11.82 baht), EKH (HOLD/TP: 8.50 baht) and WHA (BUY/TP: 4.60 baht).
Travelers to China are currently required to quarantine at a hotel or other facility for at least the first five days after arrival. Those who have a residence in the city where they enter China are then permitted to spend the next three days at home, but are not permitted to leave.
