Chinese temple stocks soar

Reuters describes Chinese temple visits in 2023 as having more than quadrupled from the previous year, while lottery ticket sales in April rose to their highest level in a decade.

In contrast, youth unemployment hit a record 20.4% in April and multiple indicators suggest China's economic recovery is falling short of expectations after the government fully lifted COVID-19 restrictions.

Against that backdrop, stock prices of sacred Buddhist travel and lottery companies in China soared for the second consecutive day on June 1.

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

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

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

Data shows that Chinese temple visits in 2023 increased more than fourfold compared to last year. Photo: REUTERS

“The stock rally reflects a major change in the macro economy this year, which has put increasing pressure on young people’s employment,” said Shi Pengfei, a consumer analyst at Beijing-based Spring Capital.

"I hope that the youth unemployment rate will not increase too soon as the graduation season approaches. Meanwhile, with the upcoming summer vacation, I hope young people will have more time to travel," said Mr. Shi Pengfei.

The sector-specific gains contrast with moves in the broader market. China’s main stock exchange has given back most of its gains since November but is down 1% so far in 2023 due to a lackluster economic recovery and rising geopolitical tensions.

Many Chinese households are returning to safer assets, targeting bonds and deposits. They are also looking to largely state-owned sectors such as banks, energy companies and telecoms, which offer dividends as reliably as bonds.

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