Via Bloomberg
China stocks have a number of reasons to expect positive days ahead with local markets re-opening. One positive development is that travel activity has been increasing which offers more evidence that China's economy is moving past the pandemic.
According to Bloomberg around 425million people travelled internally with China through the first 4 days of the break which begun on October 01. That is around 80% of last year's numbers, so volume is heading back to normal levels. There still could be lower spending as many consumers tighten belts, but increasing local travel is a positive sign for consumer resilience.
September's retail sales data for China showed a +0.5% gain over an expected reading of 0.0%, so further travel underlines the gaining consumer strength. China's economy is not driven by US-China trade, but by domestic consumption. A rough rule of thumb is that about 60% of China's GDP comes from their consumer.
However, the recent movement in people are saying that the Chinese consumer may be heading back to business as usual.
