During the National Day holiday, it was evident that the tourism atmosphere was much more vibrant compared to the Mid-Autumn Festival. Related concept stocks did not disappoint either, showing strong momentum during the holiday period. On October 6, Hong Kong-listed airline stocks surged again, $AIR CHINA (00753.HK)$ up 3.79%, $CHINA SOUTH AIR (01055.HK)$Surged over 7%, $CHINA EAST AIR (00670.HK)$ up 6.81%.
There are two main positive factors: 1) The holiday boosted the tourism market. According to Fliggy data, high-end hotel bookings for the first two days of the National Day holiday increased by over 60% compared to the first two days of the Mid-Autumn Festival. Purchases of diversified combination products like 'hotel + dining', 'hotel + attraction tickets', and 'hotel + spa' grew by over 50%. Regionally, hotel booking growth was particularly strong in Zhejiang, Jiangsu, Shanghai, Fujian, Guangdong, Chongqing, and Hunan.
2) At the same time, the appreciation of the renminbi benefited airline stocks. Most aircraft in China's airlines are leased or purchased through loans, requiring significant dollar payments while revenue is mainly in renminbi. This makes airlines highly sensitive to exchange rate fluctuations, so the appreciation of the renminbi supports their operations. As of this writing, offshore renminbi has retreated from a recent high of 7.26 to 7.033.
Post-holiday, consumer stocks, especially those related to tourism consumption, are highly favored. In November, Beijing will host a marathon, and everyone...