As the Korea-China-Japan summit approaches, expectations are rising that Chinese tourists will visit Korea, leading to a surge in cosmetics stocks.
As of 9:35 a.m. on the 24th, Korea Cosmetics is trading at 10,450 won, up 11.5% from the previous day. It’s Hanbul is up 7.4%, Tony Moly 3.9%, Manyo Factory 4.1%, and Bbia 2.5%, all showing strong performance. Chinese cosmetics pearl raw material company Coloray is also up about 2.3%.
According to the Presidential Office, the leaders of China and Japan will visit Seoul over two days from the 26th to 27th to hold the summit. The Korea-China-Japan summit is being held for the first time in 4 years and 5 months since the 8th meeting in Chengdu, China, in December 2019.
President Yoon plans to discuss expanding economic and trade cooperation, creating a friendly investment environment, and promoting human and cultural exchanges. In particular, there is analysis that interest in the cosmetics sector will increase if the number of Chinese tourists rises due to improved relations with China.
Ha In-hwan, a researcher at KB Securities, said, "From the perspective of the recent yuan exchange rate, it could have a positive impact on the influx of Chinese tourists," adding, "Since Chinese tourists still prefer cosmetics when shopping, cosmetics companies are expected to benefit."
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