Chinese stock market opens higher after the Spring Festival, hopes for tariff relief and holiday spending boost the market

LootboxPhobia · 2026-02-24T04:16:21+00:00

After the Spring Festival holiday, Chinese stock indices opened higher, benefiting from the easing of US trade tariffs and increased consumer spending. The CSI 300 Index rose by 1%, and the Shanghai Composite Index increased by 0.8%. Export-oriented stocks gained due to improved tariff prospects, and consumer activity was strong during the holiday, with increased foot traffic and sales in major shopping districts. It is expected that future economic data will further reflect the economic gains brought by the holiday.

LootboxPhobia

2026-02-24 04:16:21

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Investing.com - China’s mainland stock indexes opened higher on Tuesday after the Spring Festival holiday, benefiting from eased US trade tariffs and government data showing increased consumer spending during the holiday.

The CSI 300 index rose 1% in early trading, while the Shanghai Composite gained 0.8%, marking the first trading day since February 13.

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Gains were widespread, with export-oriented stocks rising due to the short-term outlook of potentially reduced US trade tariffs. Previously, the US Supreme Court ruled that most of President Donald Trump’s trade tariffs were illegal, and these tariffs will be lifted starting Tuesday.

Although Trump did impose additional tariffs under different legal frameworks, these tariffs are significantly lower than his previous rates, providing some short-term relief for Chinese exporters. On Monday, several export-focused Chinese companies saw gains in Hong Kong trading.

The Chinese market was also encouraged by signs that consumer spending remained strong during the Spring Festival holiday. This was the longest recorded Spring Festival holiday, as authorities extended the break and increased stimulus measures to support domestic demand.

Initial data from the Ministry of Commerce shows that foot traffic and sales revenue in major shopping districts in China increased by nearly 5% compared to last year.

According to People’s Daily, since early February, domestic tourism reached a record 5.08 billion trips, while outbound tourism, especially to Southeast Asian destinations, surged during the holiday.

The official holiday for the 2026 Spring Festival is nine days, longer than the usual 7 to 8 days. The Spring Festival is widely regarded as one of China’s biggest consumption seasons, and Beijing has issued more subsidies this year to boost spending and growth.

Chinese companies targeting the domestic market are expected to benefit the most from this trend.

Economic data for February and March in China are now expected to provide more specific clues on how much the economy has benefited from the holiday.

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