Core Viewpoint - Citigroup's report indicates that the Ministry of Culture and Tourism forecasts 142 million domestic tourist trips and revenue of 84.79 billion yuan during the three-day New Year holiday in 2026, representing a compound annual growth rate of 2.6% and 3.1% respectively compared to the three-day holiday in 2024 [1] Group 1 - The average spending per person is recorded at 597 yuan, which is a 1% decrease compared to the 2024 level [1] - Citigroup believes that domestic travel performance during the New Year is stable, while cross-border travel shows robust growth [1] - The upcoming Spring Festival is expected to be more significant, with a strong performance anticipated due to a nine-day holiday in 2026, one day longer than in 2025 [1] Group 2 - Citigroup maintains a "buy" rating for Trip.com and Tongcheng Travel [1]

Core Insights - The domestic tourism market in China experienced a strong start for the 2026 New Year holiday, with ticket bookings for scenic spots increasing over four times year-on-year, leading to the term "snow mountain crowds" becoming a key phrase for this year's New Year tourism [1] Group 1: Popular Destinations - Major tourist destinations in China include Beijing, Shanghai, Guangzhou, Shenzhen, Hangzhou, Chengdu, Nanjing, Chongqing, Xi'an, and Tianjin, with provinces like Guangxi, Jiangsu, Henan, Zhejiang, and Shandong seeing a doubling in tourism orders [3] - Guangxi's tourism orders surged by 170% due to over 400 cultural and tourism activities, including performances and markets [3] - Lesser-known destinations like Anji saw a 930% increase in orders due to unique outdoor skiing experiences, while Qingyuan achieved a 774% growth, and other destinations like Xichang and Jingdezhen also reported significant increases [3] Group 2: Mountain Tourism - The trend of "New Year climbing" was particularly popular this year, with famous mountains like Huangshan, Wudang Mountain, Lushan, Jiuhua Mountain, and Zhangjiajie experiencing over a 150% increase in ticket bookings, with Huangshan seeing a 544% rise [4] - The combination of "snow after clouds and rime" became a viral sensation on social media, attracting many families and young tourists [4] Group 3: Ice and Snow Tourism Trends - New trends in ice and snow tourism emerged, with southern regions like Anji seeing a 930% increase in orders for outdoor skiing, while Shanghai's ice world bookings grew over five times [6] - Northern regions offered unique experiences such as ice fishing and traditional fishing culture, appealing to younger tourists seeking "cool" rather than just "cold" experiences [6] Group 4: Inbound Tourism Growth - The inbound tourism market in China showed strong growth, with experiential travel product bookings increasing over 30 times, with popular destinations including Shanghai, Beijing, and Guangzhou [7] - The "duty-free shopping + beach vacation" model in Hainan attracted international tourists, with Sanya's inbound orders increasing by 170% [7] - Emerging destinations like Li County, Heihe, Nanning, Yantai, and Foshan also showed significant growth in inbound tourism [7]

Group 1 - The Hong Kong stock market experienced a strong start in 2026, with 385 stocks rising over 100% in 2025, including 14 stocks that increased more than 10 times, indicating a bullish trend [1][2] - Notable high-performing stocks include Base Jinbiao Group with a 41.64 times increase, Beihai Kangcheng with over 18 times increase, and Zhu Feng Gold benefiting from rising gold prices with over 12 times increase [1] - The number of "red bottom stocks," which are stocks priced over 100 HKD, increased significantly from 22 at the beginning of 2025 to 45 by the end of the year, reflecting a growing recognition of quality leading enterprises [2] Group 2 - The increase in "red bottom stocks" indicates a shift towards valuing high market capitalization and high liquidity assets, with major companies like Tencent, Ctrip, and NIO leading this trend [2] - The concentration of "red bottom stocks" in sectors such as internet technology, finance, healthcare, and consumer goods suggests a reassessment of long-term value by the market [2] - Analysts from China Galaxy Securities and Huatai Securities express optimism for the Hong Kong stock market in 2026, highlighting technology as a key investment theme driven by multiple favorable factors [3]

Group 1: Domestic Tourism and Entertainment Market - The domestic tourism and entertainment market experienced a strong start during the New Year holiday, with a more than 4-fold increase in domestic scenic spot ticket bookings year-on-year [1] - The film market also performed well, with box office revenue surpassing 700 million yuan by January 3, 2026, marking the first consumption boom of the year [1][4] Group 2: Ice and Snow Tourism Trends - Ice and snow tourism became a popular choice during the New Year, with a significant rise in deep-play experiences, such as ice fishing and traditional fishing [2] - The "00s" generation accounted for 39% of travelers, indicating a shift towards experiential consumption among younger demographics [2] - Consumer enthusiasm led to a notable increase in travel-related purchases, with average spending rising over 30% year-on-year [2] Group 3: Growth in Inbound Tourism - Inbound tourism saw robust growth, particularly in Hainan, where the "duty-free shopping + beach vacation" model attracted international visitors [3] - Ticket bookings for inbound tourism increased by 110% year-on-year, with some destinations experiencing over 30-fold growth in experience-based product bookings [3] - The overall trend indicates a shift from sightseeing to deeper thematic tourism among international visitors [3] Group 4: Film Industry Highlights - The New Year film box office reached over 700 million yuan, with popular films like "The Hidden Kill" and "The Legend of the Qin" leading the box office [4][5] - "The Hidden Kill" and "The Legend of the Qin" both surpassed 100 million yuan in box office revenue, showcasing the appeal of diverse film genres [4][5] - The success of various films during the New Year period indicates a positive outlook for the Chinese film market in 2026 [4][5]

Core Insights - The tourism market in China experienced a strong start in the 2026 New Year holiday, with a significant increase in cultural and tourism consumption, particularly among younger demographics [1][4][7] Group 1: Tourism Market Performance - Domestic scenic spot ticket bookings increased by over 400% year-on-year during the New Year holiday [1] - Shanghai emerged as the most popular travel destination, with a notable rise in travel from the post-90s and post-00s generations, who accounted for 39% and 33% of travelers respectively [4] - The overall tourism consumption in Shanghai reached 12.271 billion yuan, with 6.8203 million visitors during the holiday [5] Group 2: Travel Trends and Preferences - The trend of "self-care travel" gained traction, with younger travelers seeking experiences that provide personal enjoyment rather than traditional sightseeing [4] - The search volume for "New Year travel" increased by 125% year-on-year, indicating a growing interest in themed experiences such as fireworks shows and concerts [4] - Popular domestic travel destinations included Shanghai, Beijing, Guangzhou, and Sanya, with self-driving trips also gaining popularity [4][5] Group 3: Emerging Travel Segments - Hainan became a top choice for winter escape travel, with hotel bookings increasing significantly due to the island's duty-free shopping appeal [7] - Lesser-known destinations like Anji and Qingyuan saw remarkable growth in bookings, with increases of 930% and 774% respectively, driven by unique experiences [7] - The demand for vacation rentals surged, with a 160% year-on-year increase in bookings for popular cities like Chengdu and Guangzhou [8] Group 4: Events and Entertainment - Major concerts and events during the New Year period attracted significant travel, with hotel bookings near event venues seeing substantial increases [9] - The average number of items purchased per consumer increased by over 20%, and the average spending rose by over 30% compared to the previous year [9] Group 5: International Travel Trends - Outbound travel saw a dramatic rise, with bookings for car rentals and tours increasing by over 1000% and 210% respectively [13] - The inbound tourism market also showed strong growth, with ticket bookings for attractions increasing by 110% year-on-year [13][14] - Popular inbound destinations included Shanghai, Beijing, and Guangzhou, with significant increases in visitors from neighboring countries [14]

Group 1 - The Hang Seng Index (HSI) closed at 26,445.95, up by 107.48 points or 0.41% as of January 2, 16:00 Eastern Time [1] - The highest price during the trading session was 26,472.92, while the lowest was 26,180.87, with a trading volume of 58.0567 million [1] - The HSI has a 52-week high of 27,275.90 [1] Group 2 - Major blue-chip stocks showed mixed performance, with HSBC Holdings closing at HKD 125.368, up 0.86% from the Hong Kong close [2] - Tencent Holdings closed at HKD 627.621, reflecting a 0.74% increase from the Hong Kong close [2] Group 3 - Tencent Holdings (code: 00700) latest price is HKD 623.000, with an increase of HKD 24.000 or 4.01% [3] - Alibaba Group (code: 09988) latest price is HKD 149.000, up by HKD 6.200 or 4.34% [3] - HSBC Holdings (code: 00005) latest price is HKD 124.300, increasing by HKD 1.900 or 1.55% [3] - Other notable stocks include AIA Group (code: 01299) at HKD 83.300, up 4.26%, and Baidu Group (code: 09888) at HKD 143.800, up 9.35% [3]

Core Viewpoint - Chinese assets experienced a strong start in 2026, with significant gains in various indices and stocks, indicating a continuation of the structural bull market from 2025 and a clear investment theme for the year ahead [1][2]. Group 1: Performance of Chinese Assets - The Nasdaq Golden Dragon China Index surged nearly 4%, while leveraged ETFs for Chinese stocks saw increases of over 10% and 8% respectively [2]. - Major Chinese stocks performed well, with Baidu Group rising over 12%, and other notable gains from companies like WanGuo Data and JinkoSolar, which increased by over 8% and 7% respectively [2]. - The Hong Kong market also showed strong performance, with the Hang Seng Index up 2.76% and the Hang Seng Technology Index up 4% [2]. Group 2: Currency Movements - The offshore RMB/USD exchange rate broke above 6.97, reaching a high of 6.9662, marking the strongest level since May 2023 [3]. - Factors contributing to the RMB appreciation include a strong Chinese stock market, increased demand for currency conversion from export companies, and a weakening US dollar [4]. Group 3: Global Market Trends - Global markets continued their strong performance from 2025, with Asian markets achieving their best opening since 2012, led by gains in AI and semiconductor stocks [5]. - Major US tech stocks also saw gains, with the Philadelphia Semiconductor Index rising over 4% and ASML ADR increasing by over 8% [6]. - Investor sentiment remains optimistic, with significant net inflows into global equity funds, totaling $26.54 billion in the last week of 2025 [6].

Market Performance - The Hong Kong stock market showed strong performance on the first trading day of 2026, with the Hang Seng Index surpassing 26,000 points, closing up 2.76% or 707.93 points at 26,338.47 points, with a total turnover of HKD 140.86 billion [1] - The Hang Seng Tech Index rose by 4%, closing at 5,736.44 points, indicating a positive sentiment in technology stocks [1] Blue-Chip Stocks - Baidu Group-SW (09888) led blue-chip stocks, rising 9.35% to HKD 143.8, contributing 12.42 points to the Hang Seng Index, with a trading volume of HKD 4.778 billion [2] - Baidu announced plans to spin off Kunlun Chip for independent listing, with an estimated valuation of USD 16 billion to USD 23 billion, suggesting Baidu's stake could be valued between USD 9 billion to USD 13 billion [2] - Other notable blue-chip performers included New Oriental-S (09901) up 7.15%, China Life (02628) up 5.33%, and Tencent (00700) up 4.01% [2] Sector Performance - The commercial aerospace sector saw a significant surge, with China Technology Group (01725) up 42.86% and Asia Pacific Satellite (01045) up 34.53% following the acceptance of Blue Arrow Aerospace's IPO application [3] - Semiconductor stocks also performed well, with Hua Hong Semiconductor (01347) up 9.42% and SMIC (00981) up 5.11%, driven by industry trends and acquisitions [4] - The robotics sector continued its upward trend, with notable gains from companies like Lijiang Technology (00558) and Jinli Permanent Magnet (06680) [4] Policy Impact - The National Development and Reform Commission and the Ministry of Finance announced a new policy for large-scale equipment updates and consumer goods replacement, expected to boost domestic appliance consumption [7] - Companies in the home appliance sector, such as Skyworth Group (00751) and Midea Group (00300), saw significant stock price increases, reflecting positive market sentiment towards the new policy [6][7] Notable Stock Movements - Wall Street's first trading day of 2026 saw significant movements, with Biran Technology (06082) debuting at a 75.82% increase, focusing on GPGPU chips for AI computing [7] - Meitu Company (01357) issued USD 250 million convertible bonds to Alibaba, which will make Alibaba the third-largest shareholder, indicating a strategic partnership [8] - Likin Resources (02245) received approval for its A-share IPO, reflecting confidence in its comprehensive industry chain in nickel trading and production [9]

Group 1 - Hong Kong tech stocks showed strong performance in the afternoon session on January 2, with Baidu Group rising over 8% [1] - NetEase increased by more than 6%, while Ctrip and Alibaba both saw gains exceeding 4% [1] - Tencent Holdings, Kuaishou, and JD.com all experienced increases of over 3% [1]

Core Viewpoint - Ctrip Group's stock price increased by 4.96%, currently at HKD 581.50, with a trading volume of HKD 551 million [1] Group 1: Industry Insights - The Ministry of Transport of China reported that on December 31, 2025, the inter-regional passenger flow reached 20.7763 million trips, a month-on-month increase of 33.7% and a year-on-year increase of 25.4% [1] - On January 1, 2026, the expected inter-regional passenger flow is projected to be 20.813 million trips, with a month-on-month increase of 0.2% and a year-on-year increase of 21% [1] Group 2: Company Performance - Guosen Securities forecasts that tourism demand will continue to be robust, with Ctrip benefiting from a comprehensive product supply and high-quality service, maintaining a strong domestic market position and deep competitive moat [1] - Ctrip's market share is steadily increasing, and profit margins are expected to gradually improve [1] - The company is capitalizing on the opportunity for international expansion and the benefits of inbound policy changes, maintaining a rapid growth strategy that has been validated in multiple regions, driving overall revenue growth of over 15% [1] - Ctrip's significant share buyback plan and regular dividend arrangements reflect a positive stance on shareholder returns [1]