China sees record railway trips, buoying outlook for consumption

CHINA’S railway network saw a record number of trips made on the first day of its week-long holiday, offering early signs of a consumer spending pickup in the world’s second-biggest economy.

More than 21 million trips were made on Oct 1, when China kicked off its National Day holiday period, Xinhua News Agency reported. That’s a new single-day record, and another 18.2 million trips are expected on Wednesday (Oct 2).

The traveller surge comes days after Beijing unveiled a flurry of stimulus measures to revive an economy facing challenges across the board. The moves include cutting interest rates, lowering reserve requirements for banks and easing rules for home purchases. Data earlier this week showed factory activity continued to shrink in September, highlighting the urgency of policy support.

There are tentative signs Beijing’s policies have boosted sentiment. Chinese stocks last week posted their biggest gain since 2008, while Chinese shares listed in Hong Kong jumped the most in two years on Wednesday. Potential home buyers have also flocked to showrooms in cities like Shanghai and Shenzhen.

China expects almost two billion domestic trips over the week-long holiday, up about 19 per cent from the same period in 2019 before the Covid pandemic, the transport ministry said last week. More than 80 per cent will likely be made by car, with rail, planes and other modes of transport accounting for the rest. BLOOMBERG