SHANGHAIHONG KONG, Dec 9 Reuters Investors caught offguard by China39;s dramatic COVID policy pivot are betting on both greed and fear as the economy starts to gradually reopen, snapping up shares in businesses from travel agencies and casinos to funeral companies.

The dismantling of three years of COVID curbs this week sparked a rally in the shares of liquor producer Kweichow Moutai Co and China Southern Airlines , seen likely to benefit from potential revenge consumption.

Since hopes for a policy shift began emerging in November, the Hang Seng Index and MSCI China have surged more than 30, while the CSI 300 jumped over 10, after doubledigit losses for most of the year.

Providers of death care services, including Hong Konglisted Fu Shou Yuan International Group, China39;s biggest cemetery operator and funeral service provider, have also drawn investors.

The abrupt easing in regulations means the number of critically ill, and deaths will creep up over time, boosting demand for medical and death care services, said Yin Peixin, hedge fund manager at Shanghai Jianlong Asset Management Co, who expects a big wave of outbreaks early next year.

The panic over spreading infections has fired up stocks of cough medicines, flu drugs and antigen test kit makers.

Shijiazhuang Yiling Pharmaceutical Co Ltd, a seller of anticold drugs, saw its share price double in a little over a month, while shares of Guangzhou Wondfo Biotech, which produces testing reagents, rose to a sevenmonth…