China’s High-Flown Celebrations

China’s High-Flown Celebrations

11 months ago2 mins

Data out on Wednesday showed that Chinese families celebrated the Lunar New Year in high style.

What does this mean?

Relaxing Covid restrictions was never going to set China’s economy straight overnight, but there have been some promising signs that the country’s finding its feet again. Just look at the stats for China’s most important holiday, the Lunar New Year: the first four days of the break each notched up an average 24 million journeys by road, rail, air, and water, as Chinese folk packed up en masse and headed home to be with family. And box office takings were also hale and hearty, coming in even higher than pre-pandemic levels – a feat that hotel bookings managed to pull off too. In short, there’s been a mood shift after last year, when the economy grew at its second-slowest pace since the ‘70s, and that suggests China could come back swinging even faster than expected.

China holiday travel
Source: Bloomberg

Why should I care?

The bigger picture: Feeling flush.

China’s holidaymakers weren’t all warming themselves by the family hearth, mind you: some sought more exotic locales, with experts estimating that outbound air travel quadrupled compared to last year, while overseas hotel stays doubled. That’s got analysts hoping that China’s waves of pent-up demand will turn the tide of the global economy and underpin a full-blown recovery. And the country has the ammunition to do it: data out earlier this week showed that Chinese households added a massive $2.6 trillion to the bank last year – the biggest pool of new savings in history.

For markets: Infectious optimism.

China’s good mood seems to be rubbing off on everyone else: things have been looking up for all kinds of assets since restrictions eased, from shares in mining companies to stock markets in popular tourist destinations. In fact, research from Bank of America showed that investors poured a record-breaking $12.7 billion into emerging-market debt and equity funds in a single week earlier this month.

EM stocks


All the daily investing news and insights you need in one subscription.

Learn More

Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.

/3 Your free quarterly content is about to expire. Uncover the biggest trends and opportunities. Subscribe now for 50%. Cancel anytime.

© Finimize Ltd. 2023. 10328011. 280 Bishopsgate, London, EC2M 4AG