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Fu Shou Yuan International Group's Shares Surge Amid Covid Resurgence in China

Shares of Fu Shou Yuan International Group, China's largest operator of cemeteries and funeral services, reached a new yearly high of HKD 7.04 per share as of Friday's close.

People in hazmat suits handling the funeral of the patient
People in hazmat suits handling the funeral of the patient

The stock has surged about 80% in the past two months as Covid cases in China have risen sharply after the country abruptly ended most of its control measures.

Official Covid Death Toll Remains Low In China

Despite reports of a spike in Covid deaths that are straining hospitals and funeral homes, China's official Covid death toll remains low. This is because health authorities there have re-defined Covid deaths to only include those who die from pneumonia or respiratory failure, unlike most other countries which count any death where Covid was a factor.

China Stops Publishing Daily Infection Numbers

Over the Christmas weekend, China's National Health Commission announced that it would halt the publication of daily infection numbers.

Fu Shou Yuan Sees a Decline In Stock Price, But Is Now On Pace For a Year-to-date Gain

Shares of Fu Shou Yuan International Group saw a continued decline from April 2021 until October, when China widely tightened its virus restrictions. As of November, the stock was down nearly 40% for the year. However, it is now on pace for a 15% year-to-date gain.

Background on Fu Shou Yuan and Its Investors

Fu Shou Yuan International Group has a market cap of more than $2 billion and debuted in 2013 with backing from Carlyle Group and hedge fund firm Farallon Investors. Carlyle co-founder William Conway visited Fu Shou Yuan's main cemetery in Shanghai with a group of executives in December 2010 before agreeing to purchase $25 million worth of shares before the company going public.