Golden Week in China runs from October 1-7. The major national holiday celebrates the founding of the People’s Republic of China. Government officials anticipate 2.4 billion journeys over the holiday, up 3.2% from last year’s level. Major cities such as Guangzhou, Beijing, and Shanghai are expected to attract the most visitors.
For investors in the consumer sector, it is one of the nation’s most important travel periods due to a surge in domestic tourism, retail spending, hospitality bookings, and entertainment consumption. The week-long break from work leads to a temporary lift for many businesses as millions of Chinese consumers schedule vacations, shop, dine out, or pursue leisure activities.
Analysts think many industries could see double-digit growth from last year’s Golden Week-related sales due to an increase in consumer activity.
A broad list of some of the companies that could see a lift includes JD.com (JD), Alibaba (NYSE:BABA), Trip.com (TRIP), H World Group (HTHT), LVMH Moët Hennessy (OTCPK:LVMHF), Disney (DIS), Yum China (YUMC), Starbucks (SBUX), and Chow Tai Fook Jewellery Group Limited (OTCPK:CJEWF).
Of course, the Macau sector will be watched closely during the holiday period, including Wynn Macau (OTCPK:WYNMF) (OTCPK:WYNMY), Wynn Resorts (WYNN), Sands China (CHYY) (OTCPK:SCHYF), Las Vegas Sands (LVS), MGM China (OTCPK:MCHVF) (OTCPK:MCHVY), MGM Resorts (MGM), Galaxy Entertainment (OTCPK:GXYEF), SJM Holdings (OTCPK:SJMHF) (OTCPK:SJMHY), Melco Resorts & Entertainment (MLCO), and Studio City International (MSC).
ETFs to watch include the Global X MSCI China Consumer Discretionary ETF (NYSEARCA:CHIQ), KraneShares CSI China Internet ETF (NYSEARCA:KWEB), iShares MSCI China ETF (NASDAQ:MCHI), and Franklin FTSE China ETF (NYSEARCA:FLCH).