The China Shanghai Composite and China Shenzhen Composite have posted significant gains of 5.8% and 3.8%, respectively, on Thursday, 9 July 2015 following the announcement of measures by regulators, which have been designed to curb the market’s slide. This would be the first positive indication since China stocks began their free-fall on 12 June 2015. Despite the one-day rally, China’s stock market remains volatile. According to The Economist, Chinese individuals account for approximately 80% of trading in China. Additionally, online business publication, the Quartz, estimates that Chinese investors have lost over $3.4 trillion in equity value since the markets peaked in mid-June until the 7 July close. It is possible that this downturn will be felt by the global tourism industry, as the spending power of Chinese consumers take a hit. In terms of outbound tourism receipts, the UNWTO reports that China, the world’s top spender, had reached US$165 million in 2014, a 28% increase from 2013. It remains to be seen if the exceptional pace of growth in China’s visitor exports sustains in 2015.
HVS APAC HOSPITALITY NEWSLETTER.