Chinese mainland stock indexes resumed trading higher on Tuesday after the Lunar New Year break, supported by a combination of trade-related relief from the United States and early signs of strong consumer spending over the holiday.
In the morning session, the Shanghai Shenzhen CSI 300 index climbed 1%, while the Shanghai Composite index added 0.8% in their first trading day since February 13.
Market breadth was broad-based, with exporters among the beneficiaries as investors reacted to reduced near-term tariff pressure from the United States. The U.S. Supreme Court ruled that a substantial portion of the tariffs imposed under President Donald Trump were unlawful, and those levies were due to be lifted from Tuesday. While the administration announced new tariffs under a different legal framework, those duties were notably lower than the previous rates, creating some immediate relief for Chinese exporters. Several export-oriented Chinese firms had already rallied in Hong Kong trading on Monday in response to the developing tariff picture.
At the same time, policymakers' attempts to stimulate local consumption appeared to be paying off during the Lunar New Year period. Early figures from the Ministry of Commerce indicated that both pedestrian traffic and sales revenue in major shopping districts rose by nearly 5% year-on-year. Authorities extended the official holiday and intensified stimulus measures to support domestic demand, contributing to what officials described as the longest Lunar New Year break on record.
Travel activity across the country was particularly notable. The People’s Daily reported that domestic trips reached a record 5.08 billion since early February, and outbound travel, especially to destinations in Southeast Asia, increased sharply during the holiday. The 2026 Lunar New Year included a nine-day official holiday, longer than the more typical seven-to-eight-day pattern, and Beijing provided greater subsidies this year as part of efforts to shore up spending and economic growth.
Analysts and market participants noted that companies with significant domestic exposure stand to gain most directly from the stronger holiday consumption. Retailers, hospitality operators and travel-related businesses were highlighted as the categories likely to benefit from the elevated foot traffic and higher sales recorded during the festival period.
Looking ahead, Chinese economic releases for February and March are expected to offer more detailed information on how much the holiday boost translated into measurable gains for the broader economy. Those upcoming data points will be watched closely to assess whether the holiday surge represents a transient uptick or a more sustained improvement in domestic demand.
Clear summary
Stocks on China’s mainland opened higher after the Lunar New Year break as a U.S. ruling scaled back a bulk of prior tariffs and government data showed nearly 5% growth in shopping-area foot traffic and sales. Exporters gained on tariff relief while domestically-oriented firms benefited from a record level of holiday travel and extended government support for consumer spending.
Key points
- Shanghai Shenzhen CSI 300 rose 1% and the Shanghai Composite added 0.8% on reopening.
- A U.S. Supreme Court decision removed most of the previous tariffs, and replacement duties were set at substantially lower levels, easing near-term export pressure.
- Ministry of Commerce data showed nearly 5% year-on-year increases in both foot traffic and sales revenue in major shopping areas; domestic travel reached a record 5.08 billion trips since early February.
Risks and uncertainties
- Tariff framework changes remain in flux - although many prior levies were revoked, new tariffs introduced under a different legal basis are lower but represent an ongoing source of policy uncertainty for exporters.
- Holiday consumption data provide only an initial indication; forthcoming economic releases for February and March will be necessary to confirm whether the gains translate into broader economic momentum.
- Benefits are uneven across sectors - export-oriented and domestically-exposed firms may experience divergent impacts depending on demand patterns and exposure to trade policy shifts.