When you invest, your capital is at risk.



Lunar New Year, Spring Festival, Chunjie, Seollal, Tet. The Chinese New Year has many names and is celebrated by the world’s largest ethnicity all over the globe. With its global scale, it’s no surprise that the 15-day festival brings fortune to the economy as well.

The first written record of a Chinese new year’s celebration began with a home-cleaning ritual on the last day of the year in order to expel illness. Over time, the custom evolved into the full 15-day festival it is today with many renowned traditions including the exchanging of red envelopes, and its impact on the economy is staggering.

In China alone, over one week of the 2021 festivities, Chinese people spent over US$127b in retail and restaurants despite being amidst constant lockdowns. In comparison, Americans spent a total of US$889.3b in retail during November and December that year – a weekly average of US$111b. 

Revellers also bring value to economies beyond their borders during the Spring Festival: over three billion journeys are made – the world’s largest movement of people. While the number is expected to be just 2.1 billion this year due to the lingering effects of COVID-19, that’s still massive. And pre-pandemic, Chinese tourists each spent an average of US$4,462 in the U.S., US$3,754 in Europe, and US$3,541 in Australia – the highest spending tourists in the world.

In terms of the stock markets, while the Shanghai and Shenzhen exchanges close for a whole week, the China A50 index historically gets boosted in the lead-up to the holidays (much like the Santa Claus rally of the Western markets). This typically ends in a sell-off right before closure as many investors withdraw cash to prepare for holiday spending, however the previous rally usually makes its return when markets reopen.

The Chinese Yuan also wins – the USD/CNH ended lower in January for four out of five times in the last few years, a result of family and friends preparing red envelopes filled with the currency. Similarly, the demand for gold is pushed up as it’s quite common to give jewellery as gifts – however, this only has minimal effect on global gold prices.

So while the envelopes might be red, it seems many sectors can see huge green spikes thanks to the Lunar New Year celebrations.


Want more?

You know what to do

Insights, trends and company deep dives delivered straight to your inbox.

Stake logo
Over 7,000 5-star reviews
App Store logoGoogle Play logo

Subscribe to our free newsletters

By subscribing, you agree to our Privacy Policy.

Stake is the trading name of Hellostake Limited, a company registered in England and Wales (Company no. 11676409). Hellostake Limited is authorised and regulated by the UK Financial Conduct Authority under the Firm Reference Number 830771. Registered address: 85 Great Portland Street, London, W1W 7LT, United Kingdom.

When you invest, your capital is at risk.

The value of your investments can go down as well as up and you may receive back less than your original investment. Any advice is of a general nature only. As investments carry risk, before making any investment decision, please consider if it’s right for you and seek appropriate independent taxation and legal advice. The information on our website or our mobile application is not intended to be an inducement, offer or solicitation to anyone in any jurisdiction in which Stake is not regulated or able to market its services.

At Stake, we’re focused on giving you a better investing experience but we don’t take into account your personal objectives, circumstances or financial needs. Please view ourTerms & Conditions,Privacy PolicyandDisclaimers before deciding to use or invest on Stake. By using the Stake website or service in any way, you agree to our Privacy Policy and Terms & Conditions. All financial products involve risk and you should ensure you understand the risks involved as certain financial products may not be suitable to everyone. Past performance of any product described on this website is not a reliable indication of future performance

Copyright © 2024 Stake. All rights reserved.