A couple of items re China and the faltering economic bounce.
Tourism data cited on China’s state TV(CCTV) reported travel during the June 22-24 Dragon Boat Festival holiday was up on 2022 but down 22.8% from the pre-COVID levels of 2019.
- the number of railway trips jumped 12.8% higher than during the same period of 2019
- road travel was down 33.3% from the same period in pre-COVID 2019
- trips on down 43.6%
- trips on flights up 3% from 2019
Meanwhile, at least two South Korean carriers have cut flights to and from China, citing lower demand and sour relations between the two countries. Yonhap reported on flight suspensions on some routes through late October by Korean Air Lines and Asiana Airlines.
Markets are monitoring data from China for signs of progress for the economy as its bounce from COVID dissipates. Eyes are also on stimulus measures. The latest were policy rates cuts (for example the cut to LPRs), which were small in magnitude, more heavy-hitting fiscal stimulus would ease market concern a little more than these.
China’s leadership is more focused on political issues, support for Putin and threats to Taiwan are two, than the economy at present.
