What's trending?

  • It's the Chinese Lunar New Year, and China is rejoicing
  • China sees world's largest human migration as urbanites travel home
  • Consumer spending spikes over the festive period on hte back of gift-buying activities
  • E-wallet players step up their game


1.  World's largest human migration

  • Millions hit the road during Chinese Lunar New Year, triggering the world's largest human migration.
  • Urbanites who have moved to the city, return home to visit their relatives for the festive period.
  • Thie China government expects 3 billion trips this year - made by road, rail, sea and air.
  • A recorded 11.1 million train trips were taken across China on February 9 (Sat) as workers get back to work after the festivities.  These number were set to increase to 12.5 million on February 10 (Sun).
  • To commemorate the holidays, visits to tourist spots are increased. Tourists' sports saw a total of 415 million visitors over the week, locaking in more than USD76 million in tourism revenue.


2.  Consumer spending spikes

  • An 8.5% increase in China's retail slaes were seen over the festive period, pushing consumer stocks higher as gift buying spiked for the customary gift giving practice when visiting relatives over the holidays.
  • Reaital and catering enterprises were said to have recorded a revenue of more than USD 148 billion over the holiday period, ending February 10.


3. E-wallet players step up their game

  • The Chinese tradition of handing out lucky packets have also turned digital with E-wallet players changing the long running tradition.
  • Chinese Internet giant - Tencent, which owns WeChat, recorded more than 820 million electronic lucky packets being sent over a 6-day span of the holidays.
  • Alibaba, the other internet giant, whereas, had more than 450 million users utilising their app in a game to collect non-monetary "blessings".
  • The phenomenon is rapidly catching on in the cashless society of China, and with a 40% increase in usage from the pervious year, internet players are fast jumping on the badwagon.


How has this translated to stock price performance?

Stock Name Brief Overview Performance YTD (%)
Ctrip.com International Ltd
  • Leading provider of accommodation resercation, transportation ticketing, package tours and corporate tavel management, and other tracel-related services
Alibaba Group Hodlings
  • Multinational conglomerate specialising in ce-commerce, retails, internet, and technology
  • 5th largest internet company in the world by revenue
JD. Com Inc
  • A Chinese e-commerce company that has its headquarters in Beijing
  • 3rd largest internet company in the world by revenue
Galaxy Entertainment Group Ltd
  • Owner and operator of hotels and casinos in Macau
Tencent Holdings Ltd
  • Multinational investment holding conglomerate with subsidiaries specialising in various internet-related services and products
  • 6th largest internet company in the world by revenue

Source: Bloomberg, Yahoo Finance as at 14 February 2019. Returns quoted in local currency terms.


And the New China Sectors Index VS its peers?

With returns of 12.4% since the start of the year, the S&P New China Sectos Ex A-Share Index has taken top spot against its peers.

Source: Bloomberg, as at 14 February 2019. All returns are quoted in MYR terms for comparison purposes.


How can you gain access?

Investors can gain access to the S&P New China Ex A-Share Index through our latest exchanged-traded Fund, the TradePlus S&P New China Tracker.

Listed on the Main Market of Bursa Exchange, investors can trade Units through their brokerage account.

Name of ETF TradePlus S&P New China Tracker
Listed Market Main Market – Bursa Exchange
Trading Currencies Malaysian Ringgit US Dollar
Minimum Trading Units 100 100
Stock Code 0829EA 0829EB
Bloomberg Ticker CHNMYR MK CHNUSD MK


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