Finance

Everybody loves a league table. Across areas as varied as sports, education and consumer goods, competitive rankings have a magnetic appeal. The question of what or who rose, fell or clinched the top spot can lend a sense of drama to even the most strait-laced subjects. More

India’s battle with pollution has gone literal. To clean up Delhi’s filthy air, officials now routinely deploy “anti-smog” guns across the capital. The band-aid solution reflects desperation: air pollution, India’s public-health enemy number one, kills around 2m people a year. Recent research, however, suggests that it may be vulnerable to a more abstract weapon: market forces. More

Japanese convenience retailer Seven & i Holdings slashed its earnings forecasts for the fiscal year ending February 2025.
The owner of 7-Eleven stores said it will set up an intermediate holding company for its supermarket food business, specialty store and other businesses, amid growing pressure from investors to trim down its large business portfolios.

A customer is seen inside a 7-Eleven convenience store along a street in central Tokyo on September 9, 2024.  
Richard A. Brooks | Afp | Getty Images

Japanese convenience retailer Seven & i Holdings slashed its earnings forecasts and pressed ahead with restructuring plans that include spinning off non-core businesses into a standalone subsidiary.
The company slashed its profit forecast for the fiscal year ending February 2025 and now expects net income of 163 billion yen ($1.09 billion), a 44.4% reduction from its prior forecast of 293 billion yen. The reduction comes as it reported first-half net profit of 52.24 billion yen on 6.04 trillion yen in revenue. While sales came in higher than forecast, profits significantly below its own guidance for 111 billion yen.

Seven & i said it saw fewer customers at its overseas convenience stores as they took a “more prudent approach to consumption.” The company noted it recorded a charge of 45.88 billion yen related to its spin-off of Ito-Yokado Online Supermarket.
In a separate filing, the owner of 7-Eleven said it will set up an intermediate holding company for its supermarket food business, specialty store and other businesses, amid growing pressure from investors to trim down its portfolio.
The restructuring, which would consolidate 31 units, comes as the Japanese retail group resists a takeover attempt by Canada’s Alimentation Couche-Tard.
In September, Seven & i rejected the initial takeover offer of $14.86 per share, claiming that the bid was “not in the best interest” of its shareholders and stakeholders and also cited U.S. antitrust concerns.
After receiving that proposal, Seven & i sought and obtained a new designation as “core business” in Japan. Under Japan’s Foreign Exchange and Foreign Trade Act, foreign entities need to notify the government and submit to a national security review if they are buying a 1% stake or more in a designated company.

Revised offer

Seven & i confirmed Wednesday that it received a revised bid from ACT, but did not disclose further details. Bloomberg previously reported that the Canadian operator of Circle-K stores had raised its offer by around 20% to $18.19 per share, which would value Seven and i at 7 trillion Japanese yen. If finalized, the deal could become the biggest-ever foreign takeover of a Japanese company.

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Seven & i Holdings

It’s “entirely possible” that ACT’s buyout bid to turn into a hostile takeover attempt, Nicholas Smith, a Japan strategist at CLSA told CNBC’s “Squawk Box Asia” on Thursday. A hostile takeover occurs when an acquiring company attempts to gain control of the target company against the wishes of its management and board of directors.
“We’ve had a lot of problems with poison pills in Japan in recent years, and the legal structure is extremely opaque,” he added. Companies trying to shake off an acquirer may opt to deploy a “poison pill” by issuing additional stock options to dilute the attempted acquirer’s stake.
However, “an outright hostile tender offer would be highly unlikely,” in the view of Jamie Halse, founder and managing director of Senjin Capital, as no banks would be willing to provide the financing.
That said, if the offer gets to a “sufficiently attractive level,” he said it may be difficult for the board to continue to reject it.
“Shareholders are likely already frustrated that no further negotiations have taken place despite the increase in the offer price,” he said, adding that an activist investor may seek to “harness those frustrations” and “effect a change in the board’s composition.”

Seven & i shares were traded at 2,325 Japanese yen as of Thursday close. The Tokyo-listed shares have surged over 33% since the Canadian company’s buyout interest became public in August.
ACT has about 16,800 stores globally, far fewer than Seven & i Holdings’ approximately 85,800 stores.
The newly revised offer indicates ACT leaders are “committed,” Jesper Koll, head of Japan at Monex Group, told CNBC via email. He also pointed out that the new offer price suggests a 53% premium to where shares were trading before the initial offer.
“The money they offer is good, but there is more at stake than just numbers,” Koll said.
“I really can’t see ACT revising up its price tag,” Amir Anvarzadeh, a Japan equity market strategist at Asymmetric Advisors, told CNBC, “the pressure is on Seven & i management to prove that they can speed things up and stay independent.” More

Ripple said it is launching a slew of features aimed at helping banks and fintechs store digital tokens — as part of a broader push into crypto custody.
Crypto custody, a type of service that helps clients crypto assets, is a nascent business for Ripple, which has consolidated its efforts under a single brand called Ripple Custody.
Ripple is primarily known for the XRP cryptocurrency and RippleNet, a distributed interbank payment settlement platform.

Jakub Porzycki | Nurphoto | Getty Images

U.S. blockchain startup Ripple made a major foray into crypto custody on Thursday, launching new services aimed at helping banks and financial technology firms to store digital assets on behalf of clients.

The San Francisco-based company told CNBC it is debuting a slew of features to enable its banking and fintech clientele to keep and maintain digital tokens — as part of a broader push into custody, a nascent business for Ripple under its recently formed Ripple Custody division.
These features include pre-configured operational and policy settings, integration with Ripple’s XRP Ledger blockchain platform, monitoring of anti-money laundering risks to maintain compliance, and a new user interface that’s easier to use and engage.
The move will help Ripple, which is primarily known for the XRP cryptocurrency and its RippleNet platform, to diversify beyond its core payment settlement business. RippleNet is a messaging platform based on blockchain — the technology that underpins cryptocurrencies such as bitcoin — which lets banks share updates on the status of money movements in a global, distributed network.
Thursday’s development marks Ripple’s first significant move to consolidate its custody products under one brand, Ripple Custody, and take on a slew of companies that already offer products and services in this space, such as Coinbase, Gemini, and Fireblocks.

Custodian

Custody is a nascent but fast-growing space within the digital asset space. Custodians play a key role in the crypto market, helping clients safeguard private keys, which are the alphanumeric codes required to unlock access to digital assets and authorize transactions.

Custodians don’t just store crypto. They also help with payments and settlements, trading, and ensuring regulatory compliance with global laws governing digital currencies. The crypto custody market is forecast to reach at least $16 trillion by 2030, according to the Boston Consulting Group.
Ripple said that custody is one of the fastest-growing areas for the startup, with Ripple Custody posting customer growth of over 250% year-over-year growth this year and operating in seven countries. It counts the likes of HSBC, the Swiss arm of BBVA, Societe Generale and DBS as clients.
Gambling that a growing number of real-world assets will become tradable as digital tokens in the future, Ripple said it will allow customers of its custody services to tokenize real-world assets — think fiat currencies, commodities like gold and oil or real estate — by using XRP Ledger.
Ripple said that the integration with its XRP Ledger tech would give firms access to its own native decentralized exchange, a platform that helps match buyers and sellers of a range of digital assets without any middlemen involved for faster, low-fee trading.
“With new features, Ripple Custody is expanding its capabilities to better serve high-growth crypto and fintech businesses with secure and scalable digital asset custody,” Aaron Slettehaugh, senior vice president of product at Ripple, said in a statement shared with CNBC on Thursday.
Last year, Ripple acquired Metaco, a firm that helps other entities store and manage their crypto, in a bid to boost its nascent crypto custody business. The company this year also acquired Standard Custody & Trust Company, another crypto custody firm, to further bolster its efforts.
Ripple’s diversification bid comes at a tenuous time for XRP. Last week, the price of the XRP cryptocurrency tumbled sharply after the U.S. Securities and Exchange Commission filed to appeal a 2023 court ruling that the token should not be considered a security when sold to retail investors.
As the largest holder of XRP coins, Ripple has long battled the SEC over allegations that it sold the cryptocurrency in an illegal securities offering. Ripple denies the cryptocurrency should be considered a security. More

Federal Reserve officials at their September meeting agreed to cut interest rates but were unsure how aggressive to get.
Minutes released Wednesday indicated that “a substantial majority of participants” favored cutting by half a percentage point, through some expressed misgivings about going that large.
Since the meeting, economic indicators have showed that the labor market is perhaps stronger than officials favoring the 50 basis point move had expected.

WASHINGTON – Federal Reserve officials at their September meeting agreed to cut interest rates but were unsure how aggressive to get, ultimately deciding on a half percentage point move in an effort to balance confidence on inflation with worries over the labor market, according to minutes released Wednesday.
The meeting summary detailed reasons that policymakers decided to approve a jumbo rate cut of 50 basis points for the first time in more than four years, and showed members divided over the economic outlook.

Some officials hoped for a smaller, quarter percentage point reduction as they sought assurance that inflation was moving sustainably lower and were less worried about the jobs picture.
Ultimately, only one Federal Open Market Committee member, Governor Michelle Bowman, voted against the half-point cut, saying she would have preferred a quarter point. But the minutes indicated that others also favored a smaller move. It was the first time a governor had dissented on an interest rate vote since 2005 for a Fed known for its unity on monetary policy.
“Some participants observed that they would have preferred a 25 basis point reduction of the target range at this meeting, and a few others indicated that they could have supported such a decision,” the minutes stated.
“Several participants noted that a 25 basis point reduction would be in line with a gradual path of policy normalization that would allow policymakers time to assess the degree of policy restrictiveness as the economy evolved,” the document added. “A few participants also added that a 25 basis point move could signal a more predictable path of policy normalization.”
Markets moved little following the release, with major averages continuing on pace for big gains.

Since the meeting, economic indicators have showed that the labor market is perhaps stronger than officials favoring the 50 basis point move had expected.
In September, nonfarm payrolls increased by 254,000, much more than expected, while the unemployment rate dipped to 4.1%.
The data has helped cement expectations that while the Fed likely is in the early days of an easing cycle, future cuts likely would not be as aggressive as the September move. Chair Jerome Powell and other Fed officials in recent days have backed the expected 50 basis points in reductions by the end of 2024 as indicated by the “dot plot” unofficial forecast released after the September meeting.
The minutes noted that the vote to approve the 50 basis point cut came “in light of the progress on inflation and the balance of risks” against the labor market. The minutes noted that “a substantial majority of participants” favored the larger move, without specifying how many were opposed. The term “participants” suggests involvement of the full FOMC rather than just the 12 voters.
The minutes also noted that some members favored a reduction at the July meeting that never materialized.
Though the document was more detailed about the debate over whether to approve the 25 basis point cut, there was not as much information about why voters supported the larger move.
At his post-meeting news conference, Powell used the term “recalibration” to sum up the decision to cut, and the term also appears in the minutes.
“Participants emphasized that it was important to communicate that the recalibration of the stance of policy at this meeting should not be interpreted as evidence of a less favorable economic outlook or as a signal that the pace of policy easing would be more rapid than participants’ assessments of the appropriate path,” the minutes stated.
Such a recalibration would bring policy “into better alignment with recent indicators of inflation and the labor market.” Supporters of the 50 basis point cut “also emphasized that such a move would help sustain the strength in the economy and the labor market while continuing to promote progress on inflation, and would reflect the balance of risks.”
Under normal circumstances, the Fed prefers to cut in quarter-point increments. Previously, the central bank moved by half a point only during Covid and, before that, the 2008 financial crisis.
Market pricing is pointing to the fed funds rate ending 2025 in the 3.25%-3.5% range, about in line with the median projection of a 3.4% rate, according to the CME Group’s FedWatch. Futures markets previously had been indicating a more aggressive path and in fact now are pricing in about a 1-in-5 chance that the Fed does not cut at its Nov. 6-7 meeting.
The bond market, though, has been acting differently. Since the Fed meeting, both the 10- and 2-year Treasury yields have surged about 40 basis points.

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The average American is living longer.
But older people live fewer years in good health. Their “health span” is shrinking.
Chronic medical conditions are generally associated with higher healthcare expenses.

Momo Productions | Digitalvision | Getty Images

First, the good news: Americans are living longer than they used to.
Now, the bad news: Older Americans are spending more years in poor health. That dynamic often comes with negative financial consequences, medical and financial experts say.

Since 1960, the average U.S. life span has increased to 77.5 from roughly 70 years old, according to the Centers for Disease Control and Prevention.
But “health spans” are simultaneously shrinking.
A health span is the number of years older people spend in fundamentally good health, said Susan Roberts, a professor of medicine and epidemiology and senior associate dean for foundational research at Dartmouth College.

Today, the average person spends about 10 years with chronic ailments like diabetes, cancer, arthritis, cardiovascular disease, dementia, cataracts or osteoporosis — roughly double the duration in the 1960s, Roberts said.
As a result, there’s a “widening gap” between one’s life and health spans, she said.

This is because medicine has gotten better at keeping sick people alive, though not necessarily treating them, Roberts said. Obesity, which is an underlying cause of many chronic diseases, is also more widespread, she said. Obesity affects 42% of U.S. adults, according to CDC data released in 2021.

How health impacts wealth

Fatcamera | E+ | Getty Images

The concept of a health span is “increasingly important” for a household’s finances, said Stacy Francis, a certified financial planner based in New York and member of CNBC’s Advisor Council.
Adults are spending more time “living a life where they’re not in their best state,” said Francis, president and CEO of Francis Financial. “And it results in significant expenses.”
About 90% of the nation’s $4.5 trillion in annual health care costs are for people with chronic diseases and mental health conditions, according to the CDC.
Medical costs get “worse and worse” once people have a chronic ailment, Roberts said.
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The average 65-year-old retiring this year will spend about $165,000 in out-of-pocket health and medical expenses in retirement, up 5% from 2023, according to Fidelity Investments.
Out-of-pocket treatment costs and early retirements due to poor health are two big ways chronic conditions impact households financially, experts said.
Early retirement might mean claiming Social Security earlier than expected — perhaps resulting in a lower monthly benefit, said Carolyn McClanahan, a physician and CFP based in Jacksonville, Florida.
“A person’s health directly impacts their wealth — and this connection becomes even more acute as people age,” Susan Silberman, senior director of research and evaluation at the National Council on Aging, said in a 2022 briefing.

Of course, this isn’t to say healthy people avoid significant medical expenses.
They may ultimately pay more over the long term relative to an unhealthy individual if they need long-term care, for example, which can be costly and more likely with age, said McClanahan, the founder of Life Planning Partners and a member of CNBC’s Advisor Council.
Plus, healthy people experience more “go-go” years, meaning they can travel and spend on fun things, she said.

Invest in yourself

“When you are in your 40s and 50s, it’s the point of no return,” McClanahan said.
If adults don’t start tending to their health by this age, they become more susceptible to chronic diseases like diabetes and high blood pressure, which can lead to sudden issues like strokes and heart attacks, she said.
Treat purchases of healthy food, gym memberships or exercise classes as an investment in yourself, said Francis. Prioritize the spending on your health and, if it feels like too much money, try to cut back on spending that “doesn’t increase your health span,” she said.

“I think of that like an investment I put in my 401(k),” Francis said.
“Those extra dollars … will add years to your life and you’ll make up for it,” she said.
More than half of people can reverse a diabetes diagnosis by losing 10% of their weight within the first seven years of that diagnosis, Roberts said.
The “biggest tragedy” of chronic ailments is that “they’re preventable,” Roberts said. A few dietary tweaks — eliminating sugary drinks like soda and juice, and eating small, healthy snacks like an apple — can make a “dramatic difference,” she said.
“Learning to like healthy foods is actually not that difficult,” Roberts said. “Practice it for a couple weeks and be patient with yourself.” More

“Candidly, there’s a lot of success theater out there” when it comes to applying artificial intelligence in banking, HSBC’s head of generative AI said at a tech event in London this week.
Achtner’s comments come as other figures in the financial services sector — particularly leaders at startup firms — have made bold statements about the level of overall efficiency gains and cost reductions they are seeing as a result of investments in AI.
Nathalie Oestmann, head of NV Ltd, said that as long as people are “trained appropriately” and banks and other financial services firm can “reinvent” themselves in the new AI era, “it will just help us to evolve.”

Big technology companies are betting that a new wave of smaller, more precise AI models will be more effective when it comes to the needs of businesses in sectors like law, finance, and health care.
Jaap Arriens | NurPhoto via Getty Images

LONDON — Increasingly many financial services firms are touting the benefits of artificial intelligence when it comes to boosting productivity and overall operational efficiency.

Despite bold statements, a lot of companies are failing to produce tangible results, according to Edward J Achtner, the head of generative AI for U.K. banking giant HSBC.
“Candidly, there’s a lot of success theater out there,” Achtner said on a panel at the CogX Global Leadership Summit alongside Ranil Boteju — a fellow AI leader at rival British bank Lloyds Banking Group — and Nathalie Oestmann, head of NV Ltd, an advisory firm for venture capital funds.
“We have to be very clinical in terms of what we choose to do, and where we choose to do it,” Achtner told attendees of the event, held at the Royal Albert Hall in London earlier this week.
Achtner outlined how the 150-year-old lending institution has embraced artificial intelligence since ChatGPT — the popular AI chatbot from Microsoft-backed startup OpenAI — burst onto the scene in November 2022.
The HSBC AI leader said that the bank has more than 550 use cases across its business lines and functions linked to AI — ranging from fighting money laundering and fraud using machine learning tools to supporting knowledge workers with newer generative AI systems.

One example he gave was a partnership that HSBC has in place with internet search titan Google on the use of AI technology anti-money laundering and fraud mitigation. That tie-up has been in place for several years, he said. The bank has also dipped its toes deeper into genAI tech much more recently.

“When it comes to generative artificial intelligence, we do need to clearly separate that” from other types of AI, Achtner said. “We do approach the underlying risk with respect to generative very differently because, while it represents incredible potential opportunity and productivity gains, it also represents a different type of risk.”
Achtner’s comments come as other figures in the financial services sector — particularly leaders at startup firms — have made bold statements about the level of overall efficiency gains and cost reductions they are seeing as a result of investments in AI.
Buy now, pay later firm Klarna says it has been taking advantage of AI to make up for loss of productivity resulting from declines in its workforce as employees move on from the company.
It is implementing a company-wide hiring freeze and has slashed overall employee headcount down to 3,800 from 5,000 — a roughly 24% workforce reduction — with the help of AI, CEO Sebastian Siemiatkowski said in August. He is looking to further reduce Klarna’s headcount to 2,000 staff members — without specifying a time for this target.
Klarna’s boss said the firm was lowering its overall headcount against the backdrop of AI’s potential to have “a dramatic impact” on jobs and society.
“I think politicians already today should consider whether there are other alternatives of how they could support people that may be effective,” he said at the time in an interview with the BBC. Siemiatkowski said it was “too simplistic” to say AI’s disruptive effects would be offset by the creation of new jobs thanks to AI.
Oestmann of NV Ltd, a London-based firm that offers advisory services for the C-suite of venture capital and private equity firms, directly touched on Klarna’s actions, saying headlines around such AI-driven workforce reductions are “not helpful.”
Klarna, she suggested, likely saw that AI “makes them a more valuable company” and was consequently incorporating the technology as part of plans to reduce its workforce anyway.

The result Klarna is seeing from AI “are very real,” a Klarna spokesperson told CNBC. “We publicize these results because we want to be honest and transparent about the impact genAI is having in the real world in companies today,” the spokesperson added.
“At the end of the day,” Oestmann added, as long as people are “trained appropriately” and banks and other financial services firm can “reinvent” themselves in the new AI era, “it will just help us to evolve.” She advised financial firms to pursue “continuous learning in everything that you do.”
“Make sure you are trying these tools out, make sure you are making this part of your everyday, make sure you are curious,” she added.
Boteju, chief data and analytics officer at Lloyds, pointed to three main use cases that the lender sees with respect to AI: automating back office functions like coding and engineering documentation, “human-in-the loop” uses like prompts for sales staff, and AI-generated responses to client queries.
Boteju stressed that Lloyds is “proceeding with caution” when it comes to exposing the bank’s customers to generative AI tools. “We want to get our guardrails in place before we actually start to scale those,” he added.
“Banks in particular have been using AI and machine learning for probably about 15 or 20 years,” Boteju said, signaling that machine learning, intelligent automation and chatbots are things traditional lenders have been “doing for a while.”
Generative AI, on the other hand, is a more nascent technology, according to the Lloyds exec. The bank is increasingly thinking about how to scale that technology — but by “using the current frameworks and infrastructure we’ve got,” rather than by moving the needle significantly.

Boteju and Achtner’s comments tally with what other AI leaders of financial services have said previously. Speaking with CNBC last week, Bahadir Yilmaz, chief analytics officer of ING, said that AI is unlikely to be as disruptive as firms like Klarna are suggesting with their public messaging.
“We see the same potential that they’re seeing,” Yilmaz said in an interview in London. “It’s just the tone of communication is a bit different.” He added that ING is primarily using AI in its global contact centers and internally for software engineering.
“We don’t need to be seen as an AI-driven bank,” Yilmaz said, adding that, with many processes lenders won’t even need AI to solve certain problems. “It’s a really powerful tool. It’s very disruptive. But we don’t necessarily have to say we are putting it as a sauce on all the food.”
Johan Tjarnberg, CEO of Swedish online payments firm Trustly, told CNBC earlier this week that AI “will actually be one of the biggest technology levers in payments.” But even so, he noted that the firm is focusing more of the “basics of AI” than on transformative changes like AI-led customer service.
One area where Trustly is looking to improve customer experience with AI is subscriptions. The startup is working on an “intelligent charging mechanism” that would aim to figure out the best time for a bank to take payment from a subscription platform user, based on their historical financial activity.
Tjarnberg added that Trustly is seeing closer to 5-10% improved efficiency as a result of implementing AI within its organization. More

China’s Golden Week holiday affirmed a trend in more cautious spending, while consumers put greater emphasis on experiences.
“Low tourism spending per head and subdued services prices highlighted still weak domestic demand and continued consumption downgrading,” Goldman Sachs analysts said.
“People become more cautious with spending. Also they opt for more affordable options of travel and affordable locations,” Kenneth Chow, principal at Oliver Wyman, told CNBC on Wednesday.

Passengers line up to check in at Chengdu Tianfu International Airport on October 6, 2024 as China’s week-long National Day holiday draws to a close.
China News Service | China News Service | Getty Images

BEIJING — China’s Golden Week holiday affirmed a trend in more cautious spending, while consumers put greater emphasis on experiences.
The seven-day public holiday that ended Monday recorded about 2% less spending per domestic trip than the pre-pandemic level, according to Goldman Sachs analysis published Tuesday.

“Low tourism spending per head and subdued services prices highlighted still weak domestic demand and continued consumption downgrading,” the analysts said.
The decline was an improvement from a gap of more than 10% during holidays in the spring, the Goldman report said.
The Golden Week holiday in China commemorates the founding of the People’s Republic of China on Oct. 1. It is the last public holiday of the year for the country.

Nearly one-fifth of bookings on Trip.com for the holiday came from users ages 20 to 25, making them the main consumer group, the company said. It noted more than 90 concerts were held during the holiday, and that daily growth in orders for performances and exhibitions grew by an average of more than 80% during the period.
However, a lack of blockbusters resulted in a drop in box office earnings, to 2.1 billion yuan ($300 million) this year, from 2.7 billion yuan last year, according to state media, citing the China Film Administration.

Consumers were also more spontaneous.
Trip.com said nearly 30% of travelers booked travel on the same day, or one day in advance, a 6 percentage point increase from last year. The average number of days customers booked in advance fell to 6 days this year, down from 6.8 days last year, the company said.
The holiday this year followed a flurry of policy announcements and promises, and a stock market surge. Consumer spending in China has been lackluster since the pandemic due to uncertainty about future income and economic growth.
“People become more cautious with spending. Also they opt for more affordable options of travel and affordable locations,” Kenneth Chow, principal at Oliver Wyman, told CNBC on Wednesday.
“People are much more interested in spending on things they can talk about, things they can post [on social media] about, rather than just the big ticket items,” he said. He said such shifts mean brands, including luxury ones, need to focus more on communicating the benefits to potential Chinese consumers.
“When people are becoming much more sophisticated, the proposition has to change, and whoever is able to adapt to that new trend first will be able to win,” Chow said. “It’s not just about Chinese brands. It’s not just about overseas brands. It’s about who’s going to react first and who’s going to capture the attention of Chinese consumers first.”

Appliance sales climb

Christine Peng, head of the Greater China consumer sector at UBS, pointed out Wednesday that Golden Week figures indicated recovery in spending was tied to trade-in policies for appliances.
Retail sales rose by 9% during the holiday, while sales of home appliances surged by 149.1%, according to state media, citing figures from the tax administration. It did not provide the amount spent.
“The Golden Week consumption could still suggest a modest recovery versus August, in our view, due to trade-in subsidies (for appliances and autos) and consumption vouchers issued by the local governments,” Peng said. “For example, Shanghai’s retail sales rose 3%, a recovery versus -3% YoY this August.”
During Golden Week, mainland China recorded 765 million domestic trips, up from both the prior year and before the pandemic, according to the Ministry of Culture and Tourism.
However, by another measure of counting from the ministry, China had received 782 million domestic visits in 2019. It was not immediately clear whether the figures were comparable.
The average number of mainland China residents traveling across the border rose to 1.08 million a day during this year’s holiday, up from 1.01 million a day in 2019, according to CNBC calculations of official data.
Japan, Thailand and the U.K. were among the more popular destinations, according to booking site Trip.com.

Chinese mobile pay expands

Overseas transactions by China’s Alipay users surged by 60% during the first four days of the holiday versus the year-ago period, according to the mobile payments operator, owned by Alibaba-affiliate Ant Group.
Malaysia, Korea, Thailand, Hong Kong and Singapore were the top destinations for Chinese tourists by transaction volume growth, Alipay said. It noted that rather than shopping, the Chinese travelers also spent significantly on entertainment, food and beverage, services and transportation.
Foreign visitors to mainland China using Alipay spent more than twice the amount during the first four days of the holiday, versus a year ago, the company said. China has introduced visa-free travel for more countries, while Alipay and WeChat Pay — the two dominant mobile pay apps in the country — have in the last two years made it easier for foreigners to use the apps.
Hong Kong said that visitors from mainland China visitors averaged 170,000 per day during the holiday, 27% more than a year ago. On Oct. 1, Hong Kong said it received 220,000 visitors from the mainland, the highest since the end of Covid-19 border controls.
Oliver Wyman’s Chow noted how hotels, especially those in Hong Kong, were adapting to lower prices per night by selling more food or other experiences. More