Chinese Stock Exchanges closed the session with positive results, overcoming initial uncertainties. The Shanghai Composite index gained 1.01% to stand at 3,303.67 points, while the Shenzhen Composite rose 1.61% to close at 1,996.24 points.

According to official data reported by the Chinese Ministry of Commerce and local press sources, the consumption boom during the Lunar New Year provided a significant boost to the domestic economy. Around 500 million tourist trips were made during the festive period, representing an annual growth of 5.9%, while retail trade and the restaurant sector increased by 4.1%.

The railway stations and airports were the scene of a massive influx of travellers, a sign of a temporary recovery in consumption despite persistent economic difficulties and concerns over trade tensions with the United States. To counter the stagnation in consumption, the Government expanded its subsidy scheme for consumer goods -from water purifiers to refrigerators, from laptops to electric vehicles-, contributing to an increase in sales in some key sectors, with major retail chains reporting increases of more than 10% in sales of household appliances and communication equipment.

Despite positive signs, the Chinese economy recorded a GDP growth rate of around 5% in 2024, the lowest level since 1990, excluding the effects of pandemic periods. Beijing seems intent on setting the growth target again at “around 5%”, although growing trade tensions with the US represent a significant risk for the medium term. In conclusion, the rises recorded on the main Shanghai and Shenzhen indices show that the recovery in consumption during the Lunar New Year is helping to alleviate concerns related to weak domestic demand, offering a positive signal in an economic environment characterized by structural challenges and uncertainties stemming from international trade conflicts.