China’s domestic travel demand remained healthy, but prices showed divergent trends, Goldman Sachs published a research report, citing the latest data from various verticals in the travel industry. After the Labor Day holiday, short-haul travel experienced a seasonal slowdown, while business travel demand displayed notable fluctuations given macro uncertainties. For long- haul travel, air passenger traffic growth maintained at about 6%.

Airlines and online travel agencies (OTAs) were optimistic about the upcoming summer travel demand, Goldman Sachs noted, forecasting that domestic and international airline passenger traffic will grow by 6% and 19% YoY in 3Q25. Although some investors may be concerned about heightened competition in the OTA and Macau gaming industries, Goldman Sachs assumed that JD-SW (09618.HK)  +1.700 (+1.362%)    Short selling $133.06M; Ratio 16.807%   (JD.US)      entering the hotel and travel industry is unlikely to yield results in the short term. The broker also considered that JD will prioritize resources to develop its food delivery business, which has higher synergy with its core retail business.

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Goldman Sachs continued to favor Macau gaming companies and the OTA industry, anticipating that Macau's GGR growth in 2Q25 will accelerate to about 4-5%, vs 1% increase in 1Q25. With a lower base from June to September, the full-year GGR growth forecast may be further revised up, boosting market earnings expectations for the industry.

The broker remained optimistic about GALAXY ENT (00027.HK)  +0.550 (+1.664%)    Short selling $35.35M; Ratio 18.414%   and SANDS CHINA LTD (01928.HK)  +0.500 (+3.264%)    Short selling $25.09M; Ratio 23.063%   , both rated as Buy. Among OTAs, Goldman Sachs believed TONGCHENGTRAVEL (00780.HK)  +0.800 (+4.061%)    Short selling $46.33M; Ratio 32.554%   has more stable margin and attractive valuation, giving it a Buy rating with a target price of HKD28.7.

In the hotel industry, Goldman Sachs preferred Atour (ATAT.US)      , rated as Buy. It maintained a Neutral rating on CTG DUTY-FREE (01880.HK)  +0.900 (+1.706%)    Short selling $522.12K; Ratio 1.415%   , with the target price cut from HKD47 to HKD46.2 to reflect duty-free sales miss in Hainan.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-06-24 12:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)

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