china tourism investor relations

China Travel International Investment Hong Kong Limited

— leading investor and operator of tourist destinations.

China Travel International Investment Hong Kong Limited ("CTG International" for short), founded in July 1992 and listed in Hong Kong (00308.HK) in November 1992, is the flagship of tourism investment and operation business under CTG. It aims to build up a Leading Investor and Operator of Tourist Destinations offering customers with premium cultural and tourism products with unique experience in travel and leisure.

In line with the "1224" development strategy focusing on the development and operation of tourism destinations, CTG international is committed to integrating tourism-related businesses covering investment, operation and other supporting services in theme parks, natural and cultural scenic areas, leisure resorts, travel documents, hotel services, cross-border passenger transport, etc. Guided by the positioning of "Based in Hong Kong; Cultivated in Hainan; Expand Markets Domestically; Achieve Excellence Overseas", the company continues to consolidate its business in Hong Kong while actively expands overseas markets, especially in light of the "Belt and Road Initiative".

Up to now, the company has invested and operated more than 50 premium scenic areas and resorts worldwide, including 17 national 5A scenic areas, 15 national 4A scenic areas among many internet-famous sites, receiving nearly 30 million tourists annually. It has an edge on industry chain operation, super IP development and comprehensive operation management in tourism destination.

The representative projects under its flag include large tourism resorts, such as Shapotou scenic area, Desert Star Hotel(in Shapotou) ，Desert Diamond Hotel(in Shapotou) ,Ocean Spring Resort (Zhuhai and Xianyang), CTG·Anji Hele Valley (including Club Med Joyview Anji，Jurruon Anji，Capibara wonderland), Luzhou Guili Hotel , Lugu Lake Lanyond Hotel，Hung Hom Hotel，Ambala Island Resort in Maldives (under construction); theme parks such as Window of the World, Splendid China & China Folk Culture Villages; natural and cultural scenic areas like Guangxi Detian Transnational Waterfalls scenic spot, Guangxi CTG·Zuojiang Huashan Rock Art Cultural Landscape, Baise Uprising Memorial Park，Yunnan Lugu Lake, Dali Erhai Lake Ecological Corridor，Qiandaohu Lake Scenic Spot, Luzhou Laojiao scenic area; one-stop vacation product of "CTG Xinjiang Tianshan Tourism Corridor"; premium resort IPs such as Senbo Nature Park & Resort; SHUN TAK-CHINA TRAVEL providing cross-border transport services in the Guangdong-Hong Kong-Macao Greater Bay Area; CTG LANDSCAPE and CHINA TRAVEL INTELIGENCE providing tourism think tank services; Heaven Creation International Performing providing planning and operation services for tourism performing arts, and CHINA TRAVEL HI-TECH COMPUTER HONG KONG LIMITED providing high-tech tourism innovative solutions.

In recent years, CTG International has implemented an all-around "Excellence Strategy" to improve scenic area, tour contents, and tourist experience, pinpointing its attention on creating a sustainable industrial benchmark recognized by the market. It employs "Excellent Programs, Exquisite Operation, Targeted Marketing, and Considerate Services" as the leverage to advance the quality spearhead, striving to build an excellent operation and management system through excellent corporate culture and improvement of operation and management norms in personnel, finance and allocation of responsibility. With a focus on talent training, it constantly improves the capabilities to operate first-class tourist destinations in China. It also sets up the CTG scenic area destination digital platform to empower front-end applications, business console, data console, comprehensive management and control, and computer-aided decision-making, so as to push forward the company’s digital transformation.

As the value creator and the brand shaper of the CTG's tourism business, CTG International always targets CTG's strategic positioning of "A world-class tourism industry group with innovation capability, resources endowment and global competitiveness" to push the implementation of "Excellence Strategy". It would fulfill the philosophy of "Integrity Operation and Premium Service" to lead the high-quality development in China’s tourism industry with innovative spirits.

Destinations in 70+ Countries and Regions

• Today's news
• Reviews and deals
• Climate change
• 2024 election
• Fall allergies
• Health news
• Mental health
• Sexual health
• Family health
• So mini ways
• Unapologetically
• Buying guides

Entertainment

• How to Watch
• My Portfolio
• Latest news
• Stock market
• Premium news
• Biden economy
• EV Deep Dive
• Stocks: Most Actives
• Stocks: Gainers
• Stocks: Losers
• Trending Tickers
• World Indices
• US Treasury Bonds
• Top Mutual Funds
• Highest Open Interest
• Highest Implied Volatility
• Stock Comparison
• Advanced Charts
• Currency Converter
• Basic Materials
• Communication Services
• Consumer Cyclical
• Consumer Defensive
• Financial Services
• Industrials
• Real Estate
• Mutual Funds
• Credit cards
• Balance transfer cards
• Cash-back cards
• Rewards cards
• Travel cards
• Personal loans
• Student loans
• Car insurance
• Morning Brief
• Market Domination
• Market Domination Overtime
• Opening Bid
• Stocks in Translation
• Lead This Way
• Good Buy or Goodbye?
• Fantasy football
• Pro Pick 'Em
• College Pick 'Em
• Fantasy baseball
• Fantasy hockey
• Fantasy basketball
• Download the app
• Daily fantasy
• Scores and schedules
• GameChannel
• World Baseball Classic
• Premier League
• CONCACAF League
• Champions League
• Motorsports
• Horse racing
• Newsletters

New on Yahoo

• Privacy Dashboard

Yahoo Finance

China tourism group corporation limited -- moody's assigns a3 to china tourism group's proposed senior unsecured notes.

Rating Action: Moody's assigns A3 to China Tourism Group's proposed senior unsecured notesGlobal Credit Research - 21 Feb 2022Hong Kong, February 21, 2022 -- Moody's Investors Service has assigned a rating of A3 to the proposed senior unsecured notes to be issued by Sunny Express Enterprises Corp. -- a wholly owned subsidiary of China Tourism Group Corporation Limited (CTG, A3 stable). CTG will unconditionally and irrevocably guarantee the proposed notes.The rating outlook is stable.CTG will use the proceeds from the proposed notes to refinance existing debt and for general corporate purposes.RATINGS RATIONALE"The proposed notes will improve CTG's liquidity and debt maturity profile, without substantially affecting its credit metrics," says Chenyi Lu, a Moody's Vice President and Senior Credit Officer."In particular, the proposed notes will not change our expectation of CTG's leverage, because the proceeds will be mainly used to refinance the company's existing debt," adds Lu who is Moody's Lead Analyst for CTG.CTG's issuer rating combines the company's Baseline Credit Assessment (BCA) of baa2 and a two-notch uplift to reflect Moody's assessment of a strong level of support from, and a very high level of dependence on, the Government of China (A1 stable) in times of need.CTG's BCA of baa2 reflects: (1) its strong and improving credit profile as a result of its fast-growing and cash-generative duty-free operations; (2) its strong brand in China as a leading travel services provider with more than 90 years of experience; (3) steadily growing demand for leisure travel in China; and (4) its strong liquidity.However, CTG's BCA is constrained by its exposure to the real estate development market, which entails business risks, including the need to finance real estate inventory and higher revenue volatility. Its BCA is also constrained by the expansion of its tourist attraction business, leading to execution risks, such as project cost overruns and delays; and the risk that it will take longer for the segment to become profitable.Moody's assumption of strong support for CTG in times of need is underpinned by the government's full ownership of CTG and its strategic importance to the development of the travel services industry in China. The assessment also factors in the Chinese government's strong ability to provide support, as reflected by the A1 sovereign rating.Moody's forecasts CTG's revenue will increase about 29% in 2021 and 25% in 2022, underpinned by an improvement in China's economy that will underpin strong demand for its travel services and duty-free business. The revenue growth assumption also incorporates higher sales from CTG's real estate development business as the company recognizes more revenue from the strong inventories it built in previous years.Moody's also expects revenue from CTG's duty-free business, which accounted for 75% of its revenue in 2020, to increase because of continued strong demand from its stores in Hainan, strong online sales, a gradual improvement in international travel and the expansion of its stores in China.Moody's projects the company's adjusted EBITDA margin to decline to 18.0% over the next 12-18 months from about 24% for the 12 months ended 30 June 2021 because of the higher selling expenses needed to increase revenue from its duty-free stores at airports. These higher selling expenses will be limited by continued strong cost and expense controls.Moody's also projects that CTG's adjusted debt/EBITDA will improve toward 2.0x-2.5x over the next 12-18 months from 3.0x for the 12 months ended 30 June 2021, supported by strong earnings growth and a moderate decrease in debt. The lower leverage will be a result of the company using its strong cash flow from operations to pay down its debt. This level of leverage is well positioned within its BCA, at baa2.CTG's excellent liquidity reflects its cash and deposits of RMB25.1 billion as of the end of June 2021. This level, along with Moody's expected cash flow from operations of RMB8.4 billion in the next 12 months, is more than enough to cover Moody's projected capital spending of RMB2.6 billion for CTG and the company's short-term maturing debt of RMB11.1 billion.Moreover, the company has good relationships with state-owned banks and strong access to domestic capital markets, given its state-owned background.The rating also takes into account the following environmental, social and governance (ESG) considerations.From a governance perspective, CTG has demonstrated prudent financial management over the years. As a wholly owned central government-owned enterprise, CTG is closely supervised by the State-owned Assets Supervision and Administration Commission in China.FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGThe stable rating outlook incorporates Moody's expectations that over the next 12-18 months, CTG's credit metrics will remain at levels that are appropriate for its current BCA; and its strategic importance to the travel services industry in China will remain intact, along with the Chinese government's ability to support the company, as reflected by the stable outlook on the sovereign rating.Moody's could upgrade CTG's rating if its BCA improves without any significant change in the support assessment. The company's BCA could improve if the company lowers its leverage by increasing its earnings or reducing its debt, or both. Credit metrics indicative of an improvement in its BCA include adjusted debt/EBITDA below 1.0x on a sustained basis.An upgrade of China's sovereign rating would not have an immediate impact on CTG's rating without an improvement in its BCA or an increase in its strategic importance to the Chinese government.Moody's could downgrade CTG's rating if its BCA is lowered because of a significant deterioration in its business or financial profile without any substantial change in the support assessment. Credit metrics indicative of a lower BCA include adjusted debt/EBITDA above 3.0x on a sustained basis.A downgrade of China's sovereign rating would not have an immediate impact on CTG's rating without a significant weakening in its role or BCA because its rating is resilient to a one-notch downgrade of the sovereign rating. The methodologies used in this rating were Retail published in November 2021 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1296095, and Government-Related Issuers Methodology published in February 2020 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1186207. Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of these methodologies. Headquartered in Hong Kong SAR, China, China Tourism Group Corporation Limited (CTG) has three main business segments: travel services, real estate development and financial services.CTG is a state-owned enterprise that is 90% owned by the State Council of China and 10% owned by the National Council for Social Security Fund of China. The company is supervised by the State-Owned Assets Supervision and Administration Commission. The company has two main subsidiaries: China Travel Service (Holdings) Hong Kong Ltd (CTS, A3 stable) and China Tourism Group Duty Free Corporation Limited, which were listed on the Shanghai Stock Exchange in September 2009.REGULATORY DISCLOSURESFor further specification of Moody's key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. Moody's Rating Symbols and Definitions can be found at: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004.For ratings issued on a program, series, category/class of debt or security this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series, category/class of debt, security or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.The rating has been disclosed to the rated entity or its designated agent (s) and issued with no amendment resulting from that disclosure.This rating is solicited. Please refer to Moody's Policy for Designating and Assigning Unsolicited Credit Ratings available on its website www.moodys.com.Moody's considers a rated entity or its agent(s) to be participating when it maintains an overall relationship with Moody's. Unless noted in the Regulatory Disclosures as a Non-Participating Entity, the rated entity is participating and the rated entity or its agent(s) generally provides Moody's with information for the purposes of its ratings process. Please refer to www.moodys.com for the Regulatory Disclosures for each credit rating action under the ratings tab on the issuer/entity page and for details of Moody's Policy for Designating Non-Participating Rated Entities.Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.Moody's general principles for assessing environmental, social and governance (ESG) risks in our credit analysis can be found at http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1288235.The Global Scale Credit Rating on this Credit Rating Announcement was issued by one of Moody's affiliates outside the EU and is endorsed by Moody's Deutschland GmbH, An der Welle 5, Frankfurt am Main 60322, Germany, in accordance with Art.4 paragraph 3 of the Regulation (EC) No 1060/2009 on Credit Rating Agencies. Further information on the EU endorsement status and on the Moody's office that issued the credit rating is available on www.moodys.com.The Global Scale Credit Rating on this Credit Rating Announcement was issued by one of Moody's affiliates outside the UK and is endorsed by Moody's Investors Service Limited, One Canada Square, Canary Wharf, London E14 5FA under the law applicable to credit rating agencies in the UK. Further information on the UK endorsement status and on the Moody's office that issued the credit rating is available on www.moodys.com.Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.The first name below is the lead rating analyst for this Credit Rating and the last name below is the person primarily responsible for approving this Credit Rating. Chenyi Lu VP - Senior Credit Officer Corporate Finance Group Moody's Investors Service Hong Kong Ltd. 24/F One Pacific Place 88 Queensway Hong Kong China (Hong Kong S.A.R.) JOURNALISTS: 852 3758 1350 Client Service: 852 3551 3077 Clement Cheuk Yiu Wong Associate Managing Director Corporate Finance Group JOURNALISTS: 852 3758 1350 Client Service: 852 3551 3077 Releasing Office: Moody's Investors Service Hong Kong Ltd. 24/F One Pacific Place 88 Queensway Hong Kong China (Hong Kong S.A.R.) JOURNALISTS: 852 3758 1350 Client Service: 852 3551 3077 © 2022 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.CREDIT RATINGS ISSUED BY MOODY'S CREDIT RATINGS AFFILIATES ARE THEIR CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY’S (COLLECTIVELY, “PUBLICATIONS”) MAY INCLUDE SUCH CURRENT OPINIONS. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE APPLICABLE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S CREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS (“ASSESSMENTS”), AND OTHER OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. AND/OR ITS AFFILIATES. MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND PUBLISHES ITS PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing its Publications.To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING, ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any credit rating, agreed to pay to Moody’s Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from $1,000 to approximately $5,000,000. MCO and Moody’s Investors Service also maintain policies and procedures to address the independence of Moody’s Investors Service credit ratings and credit rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold credit ratings from Moody’s Investors Service and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit ratings opinions and services rendered by it fees ranging from JPY100,000 to approximately JPY550,000,000.MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements. ​

• Get 7 Days Free

China Tourism Group Duty Free Jumps on Solid Revenue Growth, Brighter Prospects

By Bingyan Wang

Shares of China Tourism Group Duty Free jumped Monday on the company's solid first-half revenue growth and expectations for the travel rebound to continue.

The duty-free retailer rose 8.5% in Hong Kong and 9.0% on the Shanghai Stock Exchange, outperforming the Hang Seng Index's 1.1% increase and the Shanghai Composite Index's 0.4% gain.

The world's largest retailer for travelers said Friday that its revenue for the first half of 2023 increased 30% from a year earlier to 35.86 billion yuan ($4.97 billion). Its profit fell to CNY3.86 billion from CNY3.94 billion, but analysts said the result was within expectations and lower discount levels for products should improve profits.

Consumer spending in the duty-free industry is still recovering, analysts from Minsheng Securities said in a note. China Tourism Group Duty Free's average transaction value during the holidays was lower this year due to the lingering Covid-19 impact, but consumption power is expected to pick up in the second half of the year, the analysts said.

Analysts from Guosen Securities said the company's shares have priced in pessimistic expectations of the consumption environment, outbound-travel recovery and the progress of Hainan province's independent customs system. With the company's market capitalization back at levels before late June 2020, the stock is expected to rise in the second half of 2023, the analysts said.

Both investment banks kept their buy rating on the duty-free retailer.

Write to Bingyan Wang at [email protected]

(END) Dow Jones Newswires

July 09, 2023 23:28 ET (03:28 GMT)

Market Updates

What history tells us about the fed’s next move, what’s happening in the markets this week, alphabet’s new dividend: what investors need to know, going into earnings, is palantir stock a buy, a sell, or fairly valued, going into earnings, is eli lilly stock a buy, a sell, or fairly valued, what’s the difference between the cpi and pce indexes, 5 stocks to buy that we still like after they’ve run up, markets brief: stocks are starting to look cheap again, stock picks, abbvie earnings: next-generation immunology drugs help offset humira biosimilar pressure, exxon earnings: ignore earnings shortfall as long-term growth and improvement on track, american airlines earnings: we see costs overshadowing market share this year, snap earnings: advertising growth and snapchat+ drive monetization, stmicro earnings: we still see an attractive margin of safety despite a poor first-half forecast, alphabet shares surge on strong earnings, dividend surprise, microsoft earnings: firm beats forecasts on strong ai and cloud demand, pg&e earnings: near-term regulatory certainty supports industry-leading earnings growth, sponsor center.

• China portal
• India portal
• Vietnam portal
• Indonesia portal
• Singapore portal
• Hong Kong portal

China’s Tourism Sector Prospects in 2023-24

Amid the post-pandemic recovery, China's tourism sector is rebounding with vigor in 2023. We discuss the resurgence of outbound and domestic travel, evolving traveler behavior, and tech-enabled trends in this article. From cultural exploration to wellness escapes and digital integration, the stage is set for foreign businesses and investors to seize opportunities in this transformed landscape.

• Easing of travel restrictions;
• Increase in disposable income among Chinese consumers; and
• Growing popularity of domestic tourism.

China's evolving tourism landscape

Insights from outbound tourism in h1 of 2023.

Data from the World Tourism Alliance's reports, reveal that the outbound tourism sentiment index reached 28 percent in the first half of 2023, marking a 21-point increase from the same period in 2019. The outbound tourism market has displayed a gradual "U-shaped" recovery, emphasizing a steady resurgence rather than an abrupt rebound.

• South Korea;
• United Kingdom; and

Starting from February 20, 2023, mainland cities within the Greater Bay Area initiated a pilot implementation of visa endorsements for cross-border talent to and from Hong Kong and Macao. On May 15, 2023, policies such as the nationwide implementation of group travel endorsements for mainland residents traveling to Hong Kong and Macao were fully restored.

The streamlined and optimized policies for travel to Hong Kong and Macao prompted provinces across the mainland to organize multiple tour groups, leading to a consistent rise in mainland visitors to these regions. According to data released by the Hong Kong Tourism Board, nearly 13 million visitors arrived in Hong Kong in the first half of 2023, of which approximately 10 million were mainland visitors, accounting for around 77 percent of the total.

Furthermore, based on recent data released by the National Immigration Administration, the first half of 2023 witnessed a total of 168 million inbound and outbound individuals passing through China’s immigration, marking a year-on-year increase of 169.6 percent.

At the same time, approximately 42.798 million entry and exit permits for travel to and from Hong Kong, Macao, and Taiwan were issued, indicating a significant 1509 percent increase compared to the same period in 2022.

These figures further underline China's promising revival in outbound tourism. Indeed, Chinese tourists have once again become a significant force driving global tourism and offline consumption.

In terms of outbound travel numbers, the top 10 departure cities were: Shenzhen, Shanghai, Guangzhou, Beijing, Hangzhou, Foshan, Dongguan, Zhuhai, Chengdu, and Wuhan. This highlights that outbound travel is mainly concentrated in first-tier and new first-tier cities, with the "Guangzhou-Shenzhen-Foshan-Dongguan-Zhuhai" Greater Bay Area cities also playing a pivotal role in outbound tourism.

The primary reason driving Chinese tourists to travel abroad is leisure, with business and visiting friends and relatives (VFR) as the subsequent motivations. The rapid expansion of outbound tourism from China can be attributed to the rising incomes of the middle class , the growing desire among Chinese travelers to explore diverse countries and cultures, and the ease of obtaining visas and fulfilling entry criteria for various destinations.

The steady recovery of outbound tourism

Business travel intentions have tripled, and interest in education, family visits, and medical tourism abroad is also on the rise. Other findings align, revealing that 50 percent of Chinese travelers plan to journey internationally within the next year.

A significant shift has also occurred in travel fears, particularly concerning Covid contraction. While it topped travelers' concerns in 2022, it has diminished to the least worrisome aspect this year, as per Morning Consult's survey. This shift reflects growing traveler confidence. Factors influencing this gradual recovery go beyond preferences. A recent report from the Mastercard Economics Institute reveals a shift in Chinese residents' spending patterns.

Known for their shopping inclination, there's a rising trend toward investing in experiences over possessions, particularly in a zero-Covid environment. Despite global economic uncertainties, Asia-Pacific's, including China's, travel recovery remains steady. As travel capacity grows, costs are anticipated to decrease, fueling a more dynamic travel landscape.

The Chinese government’s recent efforts to revive outbound group travel

While the relaxed restrictions will moderately boost outbound tourism, obstacles and cautious spending persist. Nonetheless, domestic travel agencies are expected to see increased revenue, leading to employment and income growth in the sector.

Domestic tourism is thriving

The remarkable rebound of China's domestic tourism sector can be attributed to a set of factors that differentiate it from the relatively slower recovery of outbound tourism. For one, the domestic tourism industry appears to be less affected by uncertainties surrounding employment and income growth compared to other service and retail sectors.

This is primarily due to the strong yearning of Chinese consumers to explore after years of mobility limitations imposed by the pandemic.

On the other hand, the prolonged revival of outbound flights has further bolstered the domestic tourism scene. Many individuals redirected their travel plans within China as international travel remained limited.

Changing Chinese travelers’ preferences in 2023

Around 8.7 billion domestic trips were taken, indicating an annual rate of around 50 percent of pre-pandemic levels. This period allowed the domestic market to mature, and travelers became more sophisticated in their pursuits, engaging in various new leisure experiences such as beach resorts, skiing trips, and city "staycations."

• Experiences matter: Survey data reveals that the rejuvenated Chinese tourist is driven by experiential travel. While outdoor and scenic trips remain popular, the preferences have evolved. Sightseeing and culinary experiences, highly valued in the initial survey series, are now joined by a growing interest in culture and history, beaches, and resorts, as well as health and wellness. This shift solidifies the trend towards experience-driven travel. Additionally, activities like skiing and snowboarding have gained popularity, possibly influenced by the 2022 Beijing Olympic Winter Games .
• Digital expert: Chinese travelers are among the world's most digitally adept consumers, easily integrating mobile technologies and social media into their daily lives. The pandemic further propelled their online engagement. Short-form videos and livestreaming have emerged as dominant online entertainment options.
• Curious: The desire to explore novel experiences in unfamiliar destinations remains strong among Chinese travelers. Despite travel radius limitations imposed by policies, survey respondents express eagerness to visit new attractions. Instead of revisiting familiar places, 45 percent of participants prioritize short trips to new sites, while long trips to new destinations are the second most favored option.

Emerging trends and destinations

Cultural and heritage tourism.

This trend is particularly pronounced in the realm of domestic tourism, where travelers are flocking to heritage sites and cultural landmarks to gain a deeper understanding of China's rich heritage.

Wellness tourism

This evolving trend has prompted destinations like Thailand to proactively adapt by refining their offerings. Through the enhancement of health tourism services and a focus on engaging student and youth travelers, Thailand has positioned itself as a prime destination for those seeking rejuvenation and self-care during their journeys.

Tech-enabled tourism in China’s innovative travel landscape

• Smart appliances and IoT integration: China's tech-driven tourism trend showcases the integration of smart appliances and the Internet of Things (IoT) into the travel journey. Travelers now wield the power to personalize their environment and encounters via smartphone apps. Innovations range from smart hotel rooms adjusting lighting, temperature, and ambiance to IoT-enabled transportation providing real-time updates, enhancing comfort and efficiency.
• Virtual and augmented reality immersion: Tech-savvy Chinese travelers are increasingly seeking immersive encounters. Virtual and augmented reality (VR/AR) have taken center stage, enabling tourists to explore historical sites, cultural landmarks, and natural marvels through virtual tours that breathe life into destinations. This not only enhances engagement but also serves as a potent tool for destination marketing.
• Seamless contactless services and digital payments : Contactless services and digital payments have become integral to China's tech-enhanced tourism scene. Travelers can navigate touchpoints like check-in, security, dining, and shopping with minimal physical interaction. QR codes have revolutionized payment methods, enabling transactions through smartphones, and eliminating the need for physical currency or cards, in alignment with the country's cashless society drive.

Preparing for the return of Chinese tourists to the international scene

Crafting authentic and familiar experiences.

They are looking beyond traditional shopping and sightseeing, expressing a keen interest in entertainment and experiential offerings. Theme parks, cultural activities, water sports, snow sports, and shows are among the sought-after activities.

The key is to offer authentic experiences that resonate with Chinese travelers' desires for immersion, while still maintaining a touch of familiarity.

Harnessing the power of social media

The burgeoning trend of city-walking , for example, where urban exploration is undertaken solely on foot, has not only captured the attention of locals but has also made significant waves across various social media platforms. Chinese netizens are embracing this form of experiential travel, and businesses can leverage social media to align with their preferences.

Platforms like Douyin, China's counterpart to TikTok, have witnessed the rise of “city-walk content”. A recent video showcasing city-walk routes in Guangzhou amassed over 171,000 likes and found its way into the favorites of 72,000 viewers.

Furthermore, Xiaohongshu, a prominent lifestyle-sharing platform in China, reported a remarkable 30-fold increase in searches related to city walk during the first half of 2023 compared to the previous year.

Collaboration with Internet giants

For instance, Amsterdam's Schiphol Airport offers a WeChat Mini Program providing information about the airport, including duty-free shopping and travel planning. Alibaba's Alipay, renowned for its mobile payment capabilities, has partnered with tax refund agencies to streamline the tax refund process for Chinese travelers.

Prioritize direct-to-consumer (D2C) channels

Key takeaways: navigating china’s tourism resurgence.

Domestically, easier travel rules and higher incomes are fueling local exploration. Internationally, outbound tourism is gradually recovering with a focus on immersive experiences, wellness, and cultural discovery.

Chinese travelers are becoming more tech-savvy, seeking out tech-enhanced experiences like virtual reality tours. This shift is boosting cultural, heritage, and wellness tourism.

Social media, especially platforms like TikTok and WeChat, are vital for engaging with Chinese travelers effectively.

In essence, China's tourism resurgence is multifaceted, with travelers seeking enriched experiences, digital engagement, and authenticity.

Businesses that align with these preferences and capitalize on domestic and international opportunities are likely to thrive in the evolving travel landscape.

Vocational Education in China: New Law Promotes Sector’s Growth

Human Genetic Resources in China: New Draft Regulation

China Resumes License Approval: What’s Next for its Gaming Industry?

China’s First Ever Private Pension Scheme – What You Need to Know

CHANGE SECTION

Events in China

Ushering in the silver economy for retail business.

Senior Manager

[partner event] china’s 2024 two sessions: implications for european businesses.

Riccardo Benussi

Gcc knowledge hub: china's new cross-border data transfer rules: regulatory highlights and insights.

Nathaniel Rushforth

Senior data security & compliance consultant, understanding china's data security regulations and cross-border data transfer for sme manufacturing companies, swiss china business academy (2023-2024): manpower and employment regulations.

Bruno Hernandez

Senior associate.

Assistant Manager

Get expert guidance.

• Audit / Review
• Business Advisory
• Business Intelligence
• Corporate Setup
• Due Diligence
• HR and Payroll
• Intellectual Property
• M&A Advisory
• Outbound Investment
• Risk Management

Tell us what guidance you seek to be connected with a professional.

Let me show you how I can be of assistance.

I can help you find and connect with an advisor, get guidance, search resources, or share feedback about this site.

Please select what you’d like to do:

Our contact personel in Italy is:

Please share a few details about what guidance you seek. We can have a suitable advisor contact you within one business day.

Search our guides, media and news archives

Type keyword to begin searching...

HOME | ABOUT CTA | MANAGEMENT | STRUCTURE | RESEARCH TEAM | ACHIEVEMENTS | CULTURE | MILESTONES

Annual Report on the Development of China’s Tourism Groups

The tourism group represents a particular type of corporate group, comprising two or more enterprises which meet the demand of tourists. Viewed from an international perspective, the tourism group is a corporate conglomerate, in which member enterprises are linked by property rights, closely associated in commercial activities such as investment and financing, planning and accounting, product R&D, marketing, brand incubation, human resources development, etc., and coordinated in their actions to achieve the group’s overall strategic objective.

The tourism group is a natural result of commercial logic in the field of industrial organization. It is a complicated tourism corporate organization; its momentum stems from its internal coupling efficacy; and the boundary of its growth is defined by its escalating internal transaction costs.

In the past 30 years, Chinese tourism enterprises, along with the development of the national tourism, have navigated their way of conglomeration through difficulties and ups and downs. As the representative of advanced productive force in the tourism industry, the explorer of commercial innovations in tourism, as well as the undertaker of industrial missions, tourism groups not only play a leading role in the development history of China’s tourism industry, but also serve as the core and dominant element thereof, representing our “national team” in the international tourism competition. In the era of great development for our tourism industry, tourism groups serve as a major platform for the dual market of tourism demand and production factors and carry on  the dream of building our nation a great power of tourism.

Although the importance of tourism groups to the tourism industry is apparent, the present academic and industrial researches on tourism groups remain in a spontaneous stage, our knowledge about tourism groups is still inadequate, our homegrown experience and development mode have not been systematically sorted out and summarized, and there is still a lack of macro comprehension and theoretical guidance for the development of tourism groups.

Against such a background, we are called upon urgently by our times to review the past and look into the future, and summarize and sort out the historical process and current conditions of our tourism groups. To this end, China Tourism Association and China Tourism Academy jointly organized a tourism development forum and released the Report on the Development of China’s Tourism Groups based on relevant surveys. All of this was intended to drive the industrial development to a strategic height, grasp the nature of tourism groups, sort out the historical clues, summarize successful experience, offer suggestions for the conglomeration of China’s tourism enterprises, and cry out for the great development of the tourism industry.

This website uses cookies. Please refer to our Cookie Notice and Privacy Notice for further information. By continuing to use this website, you agree to our use of cookies.

• Jump to main content (accesskey s)
• Jump to site navigation
• Jump to site index (accesskey 3)
• Jump to accessibility statement (accesskey 0)
• Book a room

Share price 8034.00 p 26 April 2024 at 16:35

Quick links

• Download IHG Annual Report 2022 PDF 12.12MB
• Our strategy
• How our business works
• Our global presence
• Human rights PDF 85KB
• IHG Careers

Top results

News releases

01 November 2023

IHG Hotels & Resorts CEO Expresses Support for Greater China's Tourism Industry During Visit

IHG aims to seize growth and empower a new chapter in Greater China's hospitality industry

November 1 st , 2023, Shanghai – The global hospitality industry is experiencing a boom in growth, IHG Hotels & Resorts (IHG) is focusing on development in Greater China due to its enormous potential and increasingly mature consumer market. To promote the group's ongoing development in the country, Elie Maalouf, CEO of IHG Hotels & Resorts, and the IHG executive committee visited Greater China at the end of September, where they explored new opportunities to advance the development of Greater China's culture and tourism industry. The team also met with strategic partners to discuss new opportunities for collaboration within the country’s evolving hospitality industry.

Elie Maalouf, CEO of IHG Hotels & Resorts said: “We are really excited about the growth opportunity that Greater China represents. It is an important strategic market for IHG and playing a crucial role in the long-term development of the group. Following the uncertainties of the past three years, the Chinese economy has demonstrated remarkable resilience. Thanks to proactive policies that create a strong business environment and promote international cooperation we are maintaining robust growth in Greater China and are committed to increasing our investment and development in the region. As outbound tourism from Greater China recovers, it will also bring additional opportunities for IHG's global business, and we look forward to welcoming Chinese guests to our distinctive hotels worldwide."

During the trip, Elie Maalouf and the executive committee visited IHG's support center in Shanghai and key portfolio properties in the country, including the Kimpton Qiantan Shanghai – Kimpton Hotels & Restaurants’ third property in Greater China. Located in the vibrant business district of Qiantan, the hotel offers a traveller-friendly space infused with French elegance, focusing on design and luxury without attitude.

They also visited the Regent Shanghai on the Bund, which is currently under development. Once completed, the property will become the second Regent hotel in Shanghai, continuing the luxurious legend of the brand, highlighting IHG's further expansion in Greater China's growing luxury travel market.

Expanding in Greater China

IHG’s portfolio is comprised of 19 brands, 12 of which are operational in the Greater China region, encompassing luxury & lifestyle, premium, and essential hotel brands to cover a comprehensive range of market segments.

Focused Development, Expanding Luxury & Lifestyle Categories in Greater China

With travellers’ growing demand for high-quality and personalized travel experiences, Luxury & Lifestyle hotels with distinctive designs and local cultural highlights are gaining popularity and becoming one of the key development areas for IHG in Greater China. The group continues to expand its luxury offerings to meet the diverse needs of local guests and create personalized experiences:

• Regent Hotels & Resorts, as a legendary example of luxury, Regent Hotels & Resorts is opening a glorious new chapter this year. The Regent Hong Kong reopened in March, recreating a classic landmark on the shores of Victoria Harbour, and offering guests a discreetly luxurious private sanctuary. The Regent Shanghai on the Bund will also be reborn soon, continuing the classic legend of the Seagull Hotel and offering travellers an extraordinary experience.
• Kimpton Hotels & Restaurants, a distinctive representative of luxury hotel brands, recently celebrated the grand opening of the Kimpton Qiantan Shanghai. In the future, the brand will bring unparalleled luxurious experiences to guests in popular cities such as Nanjing, Sanya, Shenzhen, Wuxi, Guiyang, and Foshan.
• InterContinental Hotels & Resorts, the pioneer of luxury hotels, recently welcomed the opening of InterContinental Zhengzhou and InterContinental Shenzhen NECC, continuing to strengthen the brand's presence and offering guests the InterContinental life.
• Since its launch in 2021, the Vignette Collection has offered accommodation in major cities and tourist destinations worldwide, and will soon enter the Chinese market, providing guests with uniquely stylish luxury experiences.

Steadily Expanding Footprint for Premium and Essential Hotel Brands in Greater China

In addition to luxury & lifestyle hotels, IHG is expanding its portfolio of premium and essential brands in Greater China. In recent years, brands such as HUALUXE Hotels & Resorts, Crowne Plaza Hotels & Resorts, Holiday Inn, and Holiday Inn Express have been continually evolving to meet the demands of local consumers for personalized and high-quality stay experiences. Leveraging its rich industry experience and keen business insights, IHG has also introduced its "Franchise+" model tailored for the Chinese market to accelerate expansion in emerging markets, especially in lower-tier cities.

Daniel Aylmer, Managing Director of IHG Greater China, said: “As one of the first international hotel groups to enter the Greater China market, IHG has witnessed and participated in the robust development of its economy and hotel market over the past 48 years. Adhering to the ‘True Hospitality For Good,’ we have always placed high importance on the development of the Greater China market. Leveraging a diverse brand portfolio, we implement localization strategies and operating models that align with the Greater China market, providing hotel investors with a broader range of choices. With our profound insights into the industry and exceptional services, we are crafting personalized travel experiences for our guests that exceed industry standards.”

About IHG ®

IHG Hotels & Resorts [LON:IHG, NYSE:IHG (ADRs)] is a global hospitality company, with a purpose to provide True Hospitality for Good.

With a family of 19 hotel brands and IHG One Rewards , one of the world's largest hotel loyalty programmes, IHG has over 6,200 open hotels in over 100 countries, and nearly 2,000 in the development pipeline.

• Luxury & Lifestyle: Six Senses Hotels Resorts Spas , Regent Hotels & Resorts , InterContinental Hotels & Resorts , Vignette Collection , Kimpton Hotels & Restaurants , Hotel Indigo
• Premium: voco hotels , HUALUXE Hotels & Resorts , Crowne Plaza Hotels & Resorts , EVEN Hotels
• Essentials: Holiday Inn Hotels & Resorts , Holiday Inn Express , Garner hotels , avid hotels
• Suites: Atwell Suites , Staybridge Suites , Holiday Inn Club Vacations , Candlewood Suites
• Exclusive Partners: Iberostar Beachfront Resorts

InterContinental Hotels Group PLC is the Group's holding company and is incorporated and registered in England and Wales. Approximately 345,000 people work across IHG's hotels and corporate offices globally.

Visit us online for more about our hotels and reservations and IHG One Rewards . To download the new IHG One Rewards app, visit the Apple App or Google Play stores.

For our latest news, visit our Newsroom  and follow us on LinkedIn .

• Czech Republic
• Greater China
• Netherlands
• New Zealand
• North Macedonia
• Philippines
• South Africa
• South Korea
• Switzerland
• United Arab Emirates
• United Kingdom
• United States
• Open Search Menu Close Search Menu

Hotels — Checking Out Boutique Neighborhood Hotels In Mainland China

Shaun brodie • 19/10/2023.

Shaun Brodie

Head of Business Development Services, East China; Head of Content Greater China

Download VCard

GET THIS REPORT

Recent insights.

Hong Kong MarketBeat

Taipei MarketBeat

Research • Economy

Main Streets Across The World 2023

How can we help?

In China, Blinken urges fair treatment of American companies

• Medium Text

SUPPORT FOR RUSSIA

Sign up here.

Reporting by Simon Lewis and Beijing newsroom; Writing by Antoni Slodkowski; Editing by Christopher Cushing and Miral Fahmy

Our Standards: The Thomson Reuters Trust Principles. New Tab , opens new tab

World Chevron

Courts in Russia placed two journalists in pre-trial detention for two months on Saturday after state prosecutors accused them of taking part in the activities of an "extremist" organisation founded by late opposition politician Alexei Navalny.

CNN values your feedback

Blinken will travel to china to bolster relations amid global turbulence.

Secretary of State Antony Blinken will travel to China in the coming week as the Biden administration tries to ensure that the US-China relationship stays the course, even as the US expresses strong concerns about China’s support for Russia.

This is Blinken’s second trip to the country as top US diplomat. He visited last year in an effort to “stabilize” relations following a period of immense tension between Washington and Beijing after an American fighter plane shot down a Chinese surveillance balloon that was detected over sensitive US military sites.

President Joe Biden spoke on the phone with Xi earlier this month, marking the first conversation between the leaders since  their historic in-person summit in November .

“We are in a different place than we were a year ago when the bilateral relationship was at a historic low point,” a senior State Department official said.

Blinken will meet with senior Chinese officials in both Shanghai and Beijing during his April 24-26 visit, the official said.

The official said Blinken has “three primary objectives for his trip to China.”

“First, making progress on key issues; second, clearly and directly communicating concerns on bilateral regional and global issues; and third, responsibly managing competition,” the official said.

Blinken plans to “reiterate our deep concerns regarding the PRC’s support for Russia’s defense industrial base,” as well as its human rights abuses and “unfair economic and trade practices,” the official said.

Blinken will also discuss the situation in the Middle East. The US has repeatedly called on China both publicly and privately to press Iran to exercise restraint as tensions simmer between it and Israel .

“And of course, the secretary will discuss challenges in the Indo-Pacific, including PRC provocations in the South China Sea,” as well as North Korea’s “threatening rhetoric and reckless actions,” the official said. Blinken, he continued, “will also reaffirm the importance of peace and stability across the Taiwan Strait.”

During Blinken’s trip to China last June, he met in Beijing with top officials, including President Xi Jinping. US officials framed the trip as an effort to resume normal channels of communication with China in an effort to avoid conflict between two of the globe’s great powers.

Blinken also met with top Chinese diplomat Wang Yi in July for what was described by the US as “candid and constructive” conversation.

The call came amid heavy global turbulence — the ongoing wars in  Gaza  and  Ukraine , as well as  North Korea ’s nuclear capabilities, were topics of discussion.

The two also spoke about issues that have strained the Washington-Beijing relationship, including  Taiwan ,  China’s recent provocations in the South China Sea  and Beijing’s human rights abuses.

CNN’s Nectar Gan, MJ Lee and Donald Judd contributed to this report.

Show all

'.concat(e,"

'.concat(i,"

\n ').concat(n,'\n

\n ').concat(t,'\n

This page will automatically redirect in 5 seconds...

').concat(o).concat(n,"

\n \n '+i((c=null!=(c=p(e,"title")||(null!=n?p(n,"title"):n))?c:r,(0,_typeof2.default)(c)===s?c.call(u,{name:"title",hash:{},data:t,loc:{start:{line:12,column:73},end:{line:12,column:82}}}):c))+" \n "+i((c=null!=(c=p(e,"subtext")||(null!=n?p(n,"subtext"):n))?c:r,(0,_typeof2.default)(c)===s?c.call(u,{name:"subtext",hash:{},data:t,loc:{start:{line:13,column:24},end:{line:13,column:35}}}):c))+"\n \n

\n '+(null!=(o=p(e,"if").call(u,null!=n?p(n,"cta2PreText"):n,{name:"if",hash:{},fn:l.program(5,t,0),inverse:l.noop,data:t,loc:{start:{line:20,column:16},end:{line:20,column:57}}}))?o:"")+"\n"+(null!=(o=(p(e,"ifAll")||n&&p(n,"ifAll")||r).call(u,null!=n?p(n,"cta2Text"):n,null!=n?p(n,"cta2Link"):n,{name:"ifAll",hash:{},fn:l.program(7,t,0),inverse:l.noop,data:t,loc:{start:{line:21,column:16},end:{line:26,column:26}}}))?o:"")+"

• Share full article

Advertisement

Supported by

DealBook Newsletter

How Can Elon Musk Reassure Tesla Investors?

The electric vehicle maker has announced price cuts and a Cybertruck recall ahead of Tuesday’s pivotal earnings report.

By Andrew Ross Sorkin ,  Ravi Mattu ,  Bernhard Warner ,  Sarah Kessler ,  Michael J. de la Merced ,  Lauren Hirsch and Ephrat Livni

Tesla investors’ nerve-racking ride

Tesla has hardly been keeping quiet as it prepares to announce earnings on Tuesday.

Shares in the carmaker are down in premarket trading on Monday after the company announced further cost cuts and a recall of its ballyhooed Cybertruck model over the past few days. These developments are the latest signs that Tesla is confronting its toughest stretch in years — and many shareholders aren’t convinced that the company and its C.E.O., Elon Musk, are taking the right steps to address it.

The latest: During the weekend, Tesla cut prices of several models in China, the U.S. and Europe. The company also reduced the price of its driver-assistance software, known as Full Self-Driving (which doesn’t actually allow for fully autonomous driving).

Those moves came a day after Tesla voluntarily recalled nearly 4,000 Cybertrucks over a faulty accelerator pedal that could get stuck.

It’s all apparently keeping Musk so busy that he canceled a trip to India , during which he was expected to meet with Prime Minister Narendra Modi and announce plans to build a factory there.

The moves came after an event-filled week for Tesla. The company had already announced that it was laying off 10 percent of its work force and that it was asking shareholders to again approve a multibillion-dollar payout for Musk that a Delaware judge had voided.

Markets aren’t sure the carmaker is on the right track. The cost cuts are only the latest announced in recent months, as Tesla tries to reverse a sales slump while rivals are taking market share. Analysts are especially worried about softening demand in China, a wider E.V. slowdown in the U.S. , and that the price reductions are hurting global profit without juicing sales.

Investors are also concerned about Musk’s renewed focus on introducing autonomous-driving services like a so-called robotaxi. The project is likely to be expensive and its outcome uncertain — and may be coming at the expense of introducing a cheaper Tesla model that could help revive sales.

Shares in Tesla have fallen more than 40 percent this year , and that’s before Tuesday’s report. Wall Street already expects it will show a sharp plunge in operating profit and revenue.

Musk supporters point out that he has made counterintuitive, aggressive bets before that not only saved the company but briefly made it one of the world’s most valuable publicly traded businesses. They’re hoping that will happen again — but a lot has to go right this time.

HERE’S WHAT’S HAPPENING

Investors are watching tech earnings and inflation data this week. Besides Tesla, three other members of the so-called Magnificent Seven report quarterly results this week: Meta on Wednesday and Microsoft and Alphabet on Thursday. Markets are looking for updates on whether their giant bets on artificial intelligence are bearing fruit. On Friday, the Personal Consumption Expenditures index, the Fed’s preferred gauge on inflation, is scheduled for release. A hot reading could further muddle the central bank’s timeline for interest rate cuts.

Bitcoin rises after last week’s “halving.” The cryptocurrency token was trading around $66,000 on Monday, up roughly 3 percent, following the event on Friday that effectively reduced the number of new Bitcoins that are produced.

The New York Stock Exchange weighs round-the-clock trading. Exchange officials are polling market participants on their thoughts about going 24/7, according to The Financial Times , which would put stocks on the same trading cycle as cryptocurrencies, major currencies and U.S. Treasury notes. The push to do so is gaining momentum as a start-up exchange backed by Steve Cohen’s Point72 Ventures seeks S.E.C. approval for always-open trading.

The U.S. and China ramp up their tech fight

Secretary of State Antony Blinken travels to China this week, with little sign that the clouds hanging over relations between the world’s biggest economies are lifting.

Blinken is set to warn China about its support for Russia’s military. But his trip comes as Congress is poised to approve legislation that would force TikTok to split from its Chinese owner or be banned in the U.S., and after Beijing ordered Apple to remove WhatsApp and other messaging platforms from its app store.

The House made a TikTok sale or ban more likely. Lawmakers passed a bill on Saturday that would give ByteDance a year to sell TikTok. The Senate is expected to back the legislation as soon as Tuesday, and President Biden has said he would sign it into law.

TikTok says it will fight back. The company’s efforts to convince lawmakers that it’s not a risk to American security appear to have failed. (The executive who led those conversations is reportedly leaving TikTok. )

The company told employees that the bill violated the First Amendment rights of its 170 million American users, and said it would sue to block the impending law before considering any divestiture.

China is also flexing its power over U.S. tech companies that still operate there. Beijing has few options to hit back, since it has essentially banned most American tech platforms. They can only be reached through a virtual private network and are used by only a fraction of the Chinese population: WhatsApp has been downloaded about 15 million times there since 2017.

The WhatsApp move hints at how China could retaliate to a TikTok crackdown. The country is both a big manufacturing center and a market for companies like Apple and Tesla , each of which is being squeezed by fast-growing Chinese rivals.

Apple has also had to comply with increasing censorship demands in China, one of its biggest markets. Meanwhile, Tesla vehicles are banned from Chinese military and government complexes in its biggest market. (Worth noting: Elon Musk has opposed a TikTok ban.)

“ Removing WhatsApp from the App Store is mostly symbolic,” Dan Wang , a China tech analyst at Yale Law School, told DealBook. But he added that it showed that China still had levers it could pull to target U.S. business. “Beijing’s move is to show that it has an in-kind reply for any US provocation,” he said.

An ammunition giant seeks to wrangle a higher bid

For weeks, Vista Outdoor, the parent of ammunition brands like Remington and recreational labels including CamelBak, has sought to fend off a takeover bid by the investment firm MNC Capital. Now the company is seemingly opening the door — a little — to its unwanted suitor.

Vista is expected to announce on Monday that it is engaging in talks with MNC. But it will add that it still thinks its deal to sell its ammunition division to a fellow arms maker, the Czechoslovak Group, is better for shareholders than MNC’s $3 billion offer would be.

Vista will urge MNC to raise its bid above its current level of $37.50 a share . But the company continues to favor the deal it accepted last year to sell its firearms business to CSG for $1.9 billion and let its remaining business continue to trade publicly.

Vista will say that MNC’s most recent bid met the conditions to begin talks. The company will also give MNC additional nonpublic information to justify a higher offer.

It’s the latest twist in an increasingly fraught takeover tale. MNC has raised national security concerns about CSG, suggesting that it’d be unwise for the U.S. government to allow a foreign-owned weapons manufacturer to take over a key maker of ammunition components like primers.

The Republican senators J.D. Vance of Ohio and John Kennedy of Louisiana have questioned whether CSG has links to American adversaries including China and Russia. The CSG deal is being reviewed by the Committee on Foreign Investments in the United States, the federal interagency panel that reviews certain investments by overseas buyers in U.S. companies. (As an American entity, MNC isn’t subject to such an inquiry.)

CSG has fought against those concerns, arguing that it’s a top supplier to NATO forces and to Ukraine .

Vista will give itself more time to try to wring a higher bid out of MNC. The company plans to postpone a shareholder vote on the CSG deal that had been scheduled for May 16 to June 14.

Angst and A.I.

Every April, executives of news companies and tech giants descend on the Italian hilltop city of Perugia for the International Journalism Festival. There, they discuss the future of a media industry that seems to lurch from one crisis to another .

Artificial intelligence was the big topic this year , illustrating how — as in businesses from Wall Street to Big Law — the technology is seen as both friend and foe. Participants debated whether A.I. could help publishers grow their audiences, or serve as a Trojan horse that rips off journalists’ work at an industrial scale.

A.I. business models are under scrutiny. Several attendees argued that media companies’ licensing agreements with Big Tech — such as The Associated Press’s deal with OpenAI — shortchange journalists. “I’m worried that this turns us into unpaid workers for the most profitable companies in the world,” said Julia Angwin , a former ProPublica reporter who founded the nonprofit Proof News.

(The New York Times sued Microsoft and OpenAI in December for copyright infringement, arguing that the tech companies trained their chatbots using millions of its articles without permission.)

Still, news leaders continue to embrace A.I. Just about every news chief who was quizzed said their company was experimenting with it in some way, ranging from brainstorming headlines to generating news quizzes to aiding reporters in their research.

Schibsted, a Scandinavian publisher, is using A.I.’s text-to-speech functionality to make audio versions of its published news stories for its vision-impaired audiences.

Rappler, a Filipino website, is using A.I. to transform some of its stories into comics and graphics to attract younger readers.

In the “improvement needed” category: The Guardian programmed a generative A.I. model to take a stream of posts from its daily news blog and write a cogent summary. But it struggled to make sense of the blog’s reverse-chronology news flow.

The struggle to figure out A.I. comes as media watchers and civil rights advocates worry about the rise of A.I.-powered disinformation in a year of elections.

THE SPEED READ

Hipgnosis, the embattled music-rights holding company, said it’s prepared to support a takeover bid by Blackstone instead of its existing deal with Conchord Chorus. (Reuters)

Barclays named Ihsan Essaid as its sole head of global mergers and acquisitions. (Bloomberg)

About a quarter of donations to Donald Trump’s presidential campaign are being spent on his legal fees . And a Trump super PAC that paid millions for his defense may be running out of cash . (FT, Politico)

Critics say the Fed’s economic forecasting method is flawed. Ben Bernanke, a former Fed chair, proposes that central banks adopt a new model. (Bloomberg)

Best of the rest

Companies are increasingly fed up with employee activism that’s disrupting the workplace. (WSJ)

David Beckham sued the actor Mark Wahlberg over a deal for the soccer star to endorse the Wahlberg-backed F45 gym chain that went south. (The Sun)

We’d like your feedback! Please email thoughts and suggestions to [email protected] .

An earlier version of this article misstated the investment fund backing a start-up exchange pushing for 24-hour trading. It is Steve Cohen’s Point72 Ventures, not his hedge fund.

How we handle corrections

Andrew Ross Sorkin is a columnist and the founder and editor at large of DealBook. He is a co-anchor of CNBC’s "Squawk Box" and the author of “Too Big to Fail.” He is also a co-creator of the Showtime drama series "Billions." More about Andrew Ross Sorkin

Ravi Mattu is the managing editor of DealBook, based in London. He joined The New York Times in 2022 from the Financial Times, where he held a number of senior roles in Hong Kong and London. More about Ravi Mattu

Bernhard Warner is a senior editor for DealBook, a newsletter from The Times, covering business trends, the economy and the markets. More about Bernhard Warner

Sarah Kessler is an editor for the DealBook newsletter and writes features on business and how workplaces are changing. More about Sarah Kessler

Michael de la Merced joined The Times as a reporter in 2006, covering Wall Street and finance. Among his main coverage areas are mergers and acquisitions, bankruptcies and the private equity industry. More about Michael J. de la Merced

Lauren Hirsch joined The Times from CNBC in 2020, covering deals and the biggest stories on Wall Street. More about Lauren Hirsch

Ephrat Livni reports from Washington on the intersection of business and policy for DealBook. Previously, she was a senior reporter at Quartz, covering law and politics, and has practiced law in the public and private sectors.   More about Ephrat Livni