Chinese New Year 2026 is expected to be a solid but not explosive tailwind for China‑exposed consumer companies, with stronger travel volume and government-supported consumer spending coming into play. At nine days, the holiday will be the longest on record as the Year of the Horse is welcomed in.
Channel checks by Bank of America point to a healthy Chinese New Year travel season, with passenger traffic expected to rise by more than 5% from a year ago as the longer holiday period encourages more travel. Notably, Chinese authorities have allocated about 2.05B yuan for “New Year gift packages” that include consumption vouchers, subsidies, and cash red envelopes distributed to households during the nine‑day holiday. Those funds are being used to issue digital or paper coupons redeemable for discounts on dining, shopping, tourism, and accommodation, with campaigns coordinated by the Ministry of Commerce and local governments. All of which could support spending.
The Chinese New Year period is always a key event for Macau casino operators such as Las Vegas Sands (LVS), Wynn Resorts (WYNN), MGM Resorts International (MGM), Melco Resorts & Entertainment (MLCO), and their local subsidiaries because holiday visitation and gaming revenue around the festival are major drivers of quarterly earnings performance. Looking at this year’s expectations, Jefferies forecasts strong 2026 CNY results, supported by recent positive casino management commentary. Analyst Anne Ling said preferred names in the Macau casino sector are Wynn Resorts (WYNN) and Las Vegas (LVS) on the U.S. side and Galaxy Entertainment (GXYEF) and Sands China on the Hong Kong side.
Online travel agency Trip.com Group (TCOM) could also be a beneficiary of a strong CNY travel season due to improved booking trends, longer trip durations, and a more premium mix (long‑haul and higher‑class air, upscale hotels), which all support a constructive outlook for travel spending tied to the holiday. Large Chinese consumer and e‑commerce platforms, including Alibaba Group (BABA), JD.com (JD), Tencent (TCEHY), PDD Holdings (PDD), and restaurant operator Yum China (YUMC), have also been highlighted by analysts as companies that could benefit from consumption heating up around the extended holiday.
A strong CNY could also provide an incremental boost to hotel operators Hilton Worldwide (HLT) and Marriott International (MAR), as well as U.S.‑listed luxury and premium‑brand owners with sizable China exposure, such as Tapestry (TPR) and Capri Holdings (CPRI), as well as U.S.‑listed fashion and lifestyle names like Ralph Lauren (RL). Starbucks (SBUX) and Luckin Coffee (LKNCY) have also cited CNY trends in the past.
ETFs tied to China consumer spending trends include the Global X MSCI China Consumer Discretionary ETF (CHIQ), the KraneShares CSI China Internet ETF (KWEB), which is heavily weighted to e‑commerce and online services, and broader China vehicles like the iShares China Large‑Cap ETF (FXI).
A wildcard in the mix could be a new AI model release from a Chinese tech company after DeepSeek (DEEPSEEK) dramatically rattled the market last year, with its release timed around the holiday. Seedance 2.0, an AI video generator from TikTok owner ByteDance (BDNCE) is already creating some buzz.