"China's Lunar New Year Travel Surges, but Consumer Spending Lags Behind Pre-Covid Levels"

China reported a surge in travel and consumption during the Lunar New Year holiday, with 474 million trips made within mainland China and total spending reaching 632.7 billion yuan. However, average tourism-related spending per trip was below pre-pandemic levels, indicating weak consumer confidence amid deflationary pressure. While there were bright spots such as booming movie ticket sales, the economy is grappling with challenges including low confidence, deflationary pressure, and a record downturn in the real estate sector, which accounts for a significant portion of GDP and household wealth. The mixed economic data led to a modest boost in mainland Chinese markets but a drop in the Hong Kong market, as investors await more stimulus to revive growth.