Hong Kong Stock Exchange Hang Seng Index jumped 2.5% to 22,605 points, according to trading data. This is the highest level since March 2022, writes RBC. The first trading day after the celebration of the New Year according to the lunar calendar, the main index of the Hong Kong Stock Exchange ended at 22,519 points (+2.2%).

Stocks in Hong Kong rose as data on holiday spending and tourist numbers showed that consumer activity is recovering in both Hong Kong and mainland China, Bloomberg wrote. Vacation travel data and box office receipts at movie theaters in the People’s Republic of China signaled a strong pickup in demand following the lifting of quarantine restrictions in the country.

During the holiday period, the number of tourists in Hong Kong and Macau, where gambling establishments, hotels and large shopping centers are located, increased. For example, the number of tourists in Macau’s gambling hub totaled nearly 40,000 on the second holiday, the highest since the pandemic began.

“We are optimistic about Chinese equities. We may see improvement in many activity indicators in the coming months,” Nomura Holdings Asia-Pacific equity strategist Chetan Seth said.

He added that the rebound in earnings will give a boost to stock prices.

The rise in Chinese stocks was also helped by favorable conditions in foreign markets. The U.S. stock market rebounded early in the week, with comments from Fed officials dispelling fears of further overly aggressive monetary tightening. The NASDAQ Golden Dragon China Index rose 1.4% over the last three sessions.