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Shanghai-based tourism stocks jumped after Walt Disney Co. announced ticket prices for its new theme park opening soon in the Chinese metropolis that are cheaper than those at its Hong Kong venue, which may boost visitors numbers and spur development.
Shanghai Jielong Industry Group Corp., which owns land near where the Disney resort is being built, rose by the 10 percent daily limit in morning trading and was up 7.6 percent at 23.17 yuan as of 1:16 p.m. local time. Shanghai Jinjiang International Hotels Co. Development, whose parent company owns a stake in Disney’s local partner, gained as much as 7.5 percent.
“Disney’s pricing announcement yesterday and overall sound market environment today pushed up related concept stocks,” said Shenzhen-based Sealand Securities analyst Zhou Yuhua. While such share reactions could be short-lived, similar speculation may be repeated when Shanghai Disneyland officially opens June 16, Zhou said Thursday.
Tickets for the $5.5 billion Shanghai park will be priced about 20 percent cheaper than for Hong Kong, Disney said Thursday, as the company aims to draw families across income levels to its first theme park in mainland China. Daily tickets go on sale from March 28 and will be priced at 370 yuan ($56), compared with HK$539 ($69) for a one-day adult ticket to Hong Kong Disneyland.
Other gainers include Shanghai Yuyuan Tourist Mart Co., which rose as much as 6.9 percent, and the operator of the city’s subway Shanghai Shentong Metro Co., which was up by as much as 5.2 percent. Haichang Ocean Park Holdings Ltd., which operates theme parks throughout China, rose as much as 7.8 percent in Hong Kong trading.
Dalian-based Haichang, which has a new park opening in 2017 about an hour away from Shanghai Disney Resort, will benefit from the U.S. company’s entry as it could give mainland China theme parks leeway to raise their own ticket prices, said Macquarie Securities Ltd analyst Timothy Lam.
“International operators will give space to local players to raise their fees to support better services,” Lam said. “When Hong Kong Disneyland opened, Hong Kong Ocean Park saw visitation go up and made investments to upgrade and expand.”
To contact the reporters on this story: Rachel Chang in Singapore at firstname.lastname@example.org; Amanda Wang in Shanghai at email@example.com To contact the editors responsible for this story: Stephanie Wong at firstname.lastname@example.org Daryl Loo, Gregory Turk
This article was written by Bloomberg News from Bloomberg and was legally licensed through the NewsCred publisher network.