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By Camellia Huang, Investment Analyst at Aubrey Capital, a specialist global manager with offices in Edinburgh and London.

Gong Hei Fat Choy, Gong Xi Fa Cai ('wishing you great prosperity'). 2023 marks an important milestone for most Chinese people as this is the first Chinese New Year ("CNY", the Year of the Rabbit) that families and friends have been able to gather freely post COVID lockdowns. Fireworks and red packets all around!

Although the turnaround has been quicker than most would have expected, early reporting has shown an uptick in consumer enthusiasm. According to one of the leading travel operators, Tongcheng Travel, domestic airline and bus booking volumes have grown 129% and 230% vs. their 2019 CNY levels and major tourist sites have seen ticket sales reaching 70% of their pre-COVID levels.

Hainan, as one of the top travel destinations in China, saw close to 100% occupancy rates in luxury hotels. Duty free sales have topped USD 381m (+329% vs 2019) over the 7 days of CNY holiday, with over 340 000 shoppers taking part in the holiday spending spree. Our portfolio company, China Tourism Group, as the largest duty-free operator on the island (and in the country), will have benefitted from increased visitors and their spending.

Restaurant businesses with strong brand equity and locations are benefitting from this first wave of reopening with some enjoying over 6x table turnover during the CNY period (with 3-4x considered as '......................

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