During the three-day Dragon Boat Festival holiday, travel volume and industry revenue in China rose by 5.7% and 5.9% YoY respectively, while national passenger throughput increased by 2.5%, with rail and air travel up by 4.3% and 1.7%, according to Citi's research report. Cross-border traffic and visa-free entries also grew by 2.7% and 59.4% respectively.

In Citi's opinion, it was not surprising that both outbound and domestic travel data were somewhat weak because of rainfall in the Yangtze River Delta and the Dragon Boat Festival falling close to the May Day Golden Week this year. Still, TRIP.COM-S (09961.HK)  -16.000 (-3.314%)    Short selling $537.31M; Ratio 20.455%   (TCOM.US)      will be a beneficiary of the persisting inbound travel momentum.

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On the stock front, Trip.com showed robust performance in family travel demand, with family orders accounting for 25% of total bookings. Its inbound travel bookings also rocketed by nearly 90% thanks to the overlap of Children's Day and the Dragon Boat Festival. Similarly, TONGCHENGTRAVEL (00780.HK)  -0.250 (-1.163%)    Short selling $135.01M; Ratio 19.063%   saw dramatic growth in family-related travel bookings.

Citi set its target price for Trip.com's US shares at USD78 and for TONGCHENGTRAVEL at HKD26, both with a Buy rating remaining unchanged.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-06-06 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)