If you have ever been on the New York City subway during the morning or after-work commutes, you’d understand how busy it gets. Surprisingly, it’s still pretty lax compared to rush hour in Hong Kong, Beijing, or Shanghai. And when it comes to Tokyo, well, that’s just a whole other level of busy.
Just a few days ago, we entered the busiest period of the year for travel in China, with the Lunar New Year that began last Thursday, marking the Year of the Goat (a sign of prosperity).
So while China is dealing with a stalling economy and disappointing consumer spending, the current travel period is characterized by the masses going home or visiting family and friends. And that means lots of travel via the roads, rails, and skies.
Chinese Lunar New Year Busy Time for Travel Stocks
This 40-day period in China, commonly referred to as “Chunyun,” will witness tens or even hundreds of millions of people seeking travel arrangements. In all, there will be billions of passenger trips taken.
Roads will be congested with millions of cars in an already-packed road system. Trains, the most popular of the travel options in China, will see millions of riders. And the skies will be filled with thousands of planes, or about 40 million flights, according to the Civil Aviation Administration of China.
Add to this the fact that the travel sector in China is massive and expected to continue to grow as the wealth levels rise, especially in the rural areas, and you’ve got an interesting sector for American investors to consider…. Read More
Transportation Stocks to Benefit from China’s Lunar