Estee Lauder (EL) and other Club holdings with meaningful exposure to the Chinese economy bounced Friday, following news that BioNTech ‘s (BNTX) Covid vaccine will soon be available to foreign residents living in China. We’re cautiously optimistic about the vaccine development , which adds to hopes that Beijing will soften its restrictive pandemic policies after years of regular virus testing, limits on travel and rolling lockdowns that have weighed on the world’s second-largest economy. A former Chinese public health official also suggested that “substantive” changes to the government’s so-called zero Covid policy could take place in the coming months, according to Reuters . To be sure, it’s important to remain measured, and we always take speculation out of China with a grain of salt. After all, Chinese officials have not announced an official transition away from their very strict Covid policy. Friday’s vaccine news is narrow in scope: The mRNA Covid shot made by Germany’s BioNTech and U.S.-based Pfizer (PFE) will only be available to expatriates who live in China. Nevertheless, the moves in certain stocks tied to China — including many owned by the Club — show the market is taking the vaccine policy change in stride. Estee Lauder shares surged more than 7% to around $208 apiece. The cosmetics giant has a big China business and just a few days ago it cut its sales guidance partly due to China’s Covid policy. Shares of Starbucks (SBUX), which counts China as its second-largest market outside the U.S., jumped about 7%. Strong quarterly results released Thursday evening are likely helping the stock, too. Wynn Resorts (WYNN) shares rose nearly 4%. The casino operator has two important properties in the gaming hub of Macao, which is a Chinese special administrative region. Crude prices bounced about 4% on Friday, likely due to the China news because a more complete economic reopening in the country would spur oil demand. The price move provided some support for oil stocks in Friday’s volatile stock market. Details on the vaccine news Speaking in China on Friday, German Chancellor Olaf Scholz announced that Beijing would make BioNTech’s Covid vaccine available to foreigners in the country. It would mark the first time that China allowed a vaccine that was not developed domestically to be administered within its borders. BioNTech is a Germany company, and its mRNA-based vaccine — developed alongside Pfizer — is generally seen as being more effective than the vaccines made by Chinese firms. It’s not immediately clear when expatriates in China could actually start getting a shot of the BioNTech-Pfizer Covid vaccine. While its availability is limited to a certain cohort for now, Scholz reportedly advocated for broader accessibility in the country. “Of course, this can only be a first step. I hope that the circle of eligible persons can soon be widened to a general free ability of the BioNTech vaccine,” Scholz said Friday, according to…
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