Shares of Chinese temples surge.

Reuters reported that visits to temples by Chinese people in 2023 increased more than fourfold compared to the previous year, while lottery ticket sales in April rose to their highest level in a decade.

Conversely, youth unemployment hit a record high of 20.4% in April, and many indicators suggest that China's economic recovery is not as strong as expected after the government completely lifted COVID-19 restrictions.

Against this backdrop, the share prices of sacred Buddhist travel companies and lottery businesses in China surged for the second consecutive day on June 1st.

For example, shares of Emei Shan Tourism, a spiritual tourism company based on Mount Emei, and Anhui Jiuhuashan Tourism Development, the operator of the sacred mountain scenic area of ​​Jiuhuashan, both rose 10%.

Mount Emei and Mount Jiuhua are two of China's most famous sacred Buddhist mountains, attracting millions of tourists every year.

Shares of China's state-owned Sports Industry Group, which operates a lottery business, also rose 10% for two consecutive sessions.

Data shows that visits to temples by Chinese people in 2023 increased more than fourfold compared to the previous year. Photo: REUTERS

Shi Pengfei, a consumer analyst at Spring Capital, based in Beijing, China, said: "The stock rally reflects a major shift in the macroeconomic landscape this year. This shift is putting increasing pressure on youth employment."

Mr. Shi Pengfei expressed: "I hope that the youth unemployment rate will not rise sharply as graduation season approaches. Meanwhile, with the upcoming summer vacation, I hope young people will have more time to travel."

The specific gains across sectors contrast with movements in the overall market. China's main stock exchange has recovered most of its gains since last November, but has fallen 1% year-to-date in 2023 due to a weaker-than-expected economic recovery and rising geopolitical tensions.

Many households in China are returning to safer assets, so they are targeting bonds and deposits. They are also turning to predominantly state-owned sectors such as banks, energy companies, and telecommunications companies – which offer reliable dividends comparable to bonds.

Source: https://nld.com.vn/thoi-su-quoc-te/co-phieu-cua-chua-chien-trung-quoc-tang-vot-20230601195912046.htm