Chinese Stocks Slide despite Booming Lunar New Year Spending
Market News

Chinese Stocks Slide despite Booming Lunar New Year Spending

Story Highlights

Chinese stocks listed on Hong Kong stock exchanges declined in trading on Monday even after positive travel and spending data during the Lunar New Year holiday period.

Shares of Chinese companies listed on the Hong Kong stock exchange, such as Alibaba (HK:9988) (NYSE:BABA) and JD.com (HK:9618) (NASDAQ:JD), were trading lower on Monday despite booming Lunar New Year spending in China. The mainland Chinese markets reopened on Monday following the Lunar New Year holiday, while the U.S. markets remain closed due to President’s Day.

According to the data released by China’s Ministry of Culture and Tourism, Chinese people made 474 million domestic trips, a 34.3% jump year-over-year, and tourists spent around 632.7 billion yuan ($87.95 billion) on domestic holiday trips, an increase of 47.3% year-over-year.

The Chinese economy has been weighed down by slowing domestic consumption, deflationary pressures, and debt struggles in the Chinese property sector, indicating serious structural issues.

Mark Haefele, chief investment officer at UBS Global Wealth Management, commented in a research note that investors will be looking for more policy support despite positive travel and spending data. Haefele anticipates a policy boost this year in his base case scenario.

Is BABA a Buy, Sell, or Hold?

Analysts remain bullish about BABA stock with a Strong Buy consensus rating based on 15 Buys and three Holds. Over the past year, BABA has slid by more than 20%, and the average BABA price target of $101.49 implies an upside potential of 37.3% at current levels.


Price Change
S&P 500
Dow Jones
Nasdaq 100

Popular Articles