HK Stock Market Move | TONGCHENGTRAVEL (00780) up more than 3% again breaking through the peak. The popularity of Golden Week tourism is soaring, and institutions are optimistic about expanding service consumption to boost OTA.

TONGCHENGTRAVEL (00780) rose by more than 3%, reaching a high of 24.88 Hong Kong dollars, hitting a new historical high. As of the time of writing, it increased by 3.33%, reaching 24.84 Hong Kong dollars, with a trading volume of 166 million Hong Kong dollars. On the news front, the Ministry of Commerce and 9 other departments issued a notice on September 16 regarding "Several Policy Measures to Expand Service Consumption." It mentioned attracting more foreign individuals to consume in the country, optimizing student holiday arrangements, and improving supporting policies. It will explore setting spring and autumn breaks for primary and secondary schools, correspondingly shorten summer and winter breaks, and increase the time for service consumption such as travel. Zhongjin believes that if the spring and autumn breaks become a regular arrangement, it is expected to spread out the originally concentrated demand for tourism, forming new small peaks of travel, and making the distribution of tourism demand more balanced throughout the year. Better balancing prices, OTAs winning by quantity, and long holidays driving profit margins up. In addition, according to CCTV, the National Day and Mid-Autumn Festival holidays will be combined in 2025, with a holiday from October 1st to October 8th for eight days. This year, the holiday travel demand is high. Citigroup predicts that there will be strong demand for travel during this period, and long-haul and outbound tourism may benefit more. Citigroup maintains its buy rating on Tongcheng with a target price of 28 Hong Kong dollars.