These stocks ring in the Chinese New Year

Published Mon, Feb 8 20163:30 PM EST

The Year of the Monkey is upon us, with Chinese New Year celebrations kicking off on Monday. It is typically a lucrative time for retailers and Chinese companies as citizens typically spend more during this one week holiday. Steve Orlins, President of the National Committee on US-China Relations, who just returned from a trip to China, senses demand will likely be strong. "Just look at the consumption numbers – the Chinese consumer is spending," said Orlins. While the data out of China as of late has been negative–retail sales have been somewhat of a bright spot, rising 11 percent in the month of December. Investors who focus on China like Edwin Gutierrez, head of Emerging Market Sovereign Debt at Aberdeen Asset Management, say the lunar year is "always used as a good gauge of consumer demand, especially with home sales, retail sales, etc." The real question facing China is whether the recent economic slowdown and the plunge in stock prices will result in consumers spending less. "We'll want to see if the Chinese consumer is still willing to spend in the run-up to and during the festival, said Paul Christopher, Head Global Market Strategist at Wells Fargo Investment Institute. However experts at Teneo Intelligence don't foresee demand being weak. "I don't think that the slowdown will dampen sales. The spending during the lunar new year is something like fixed spending. Chinese will not save during the time. People tend to spend more on clothes, consumer electronic goods, food and travels during the period, said Andy Liu, Senior Vice President at Teneo Intelligence. Teneo Intelligence also points to data from MOFCOM, which shows in 2015, the domestic retail and hospitality sector's turnover reached RMB 678 billion for the seven day period around the new year. "I expect this figure will be higher in 2016," said Liu. Read More Santoli: This 'coward' portfolio yields 5% In case you're wondering the importance of the New Year to the Chinese, NSBO Bank says it like the "Christmas" of China when holidays sales are an important driver. "The Chinese New Year has a significant impact on the Chinese economy, similar to Christmas in the West. The period leading up to the New Year, called Chunyun, is the world's largest regular human migration, with tens of millions of urbanites heading home every day to spend the holiday with family. Trains are booked full within minutes after tickets are on sale, and mob justice has occasionally been doled out to scalpers trying to make a quick buck," says William, McFadden, head of sales at NSBO Bank. Traders will also be keeping a close eye on the Chinese ADRs as many of these stocks tend to outperform around the Lunar Year. Using the data tool Kensho, CNBC found that Baidu on average gains 6 percent one month after the Chinese New Year. While U.S. luxury retailers Michael Kors and Coach , both of which have a core audience in Chinese, gain 14 percent and 5 percent respectively. Chinese ETFs also tend to do well with the FTSE China 25 Index gaining about one percent, 82 percent of the time, one month after the annual event. The bulls on wall street may also be helped by the Chinese New Year. Sam Stovall, US Equity Strategist at S & P Capital IQ points out that since 1945, the S & P 500 gained an average 7.8 percent during the January-to-January period associated with the Year of the Monkey, and rose in price 100 percent of the time. Aside from stocks, NSBO Bank says to watch the Chinese currency during the holiday week. "The tradition of offering Hongbao, or "Red envelopes" with cash to wish family and friends good fortune for the year, has such a significant impact on the country's economy that the PBOC has regularly issues short-term liquidity injections through reverse repos to counteract the draw: this year, the PBOC added 440bn yuan in reverse repos ahead of the CNY. Most gift-giving is done in cash, rather than through gifts." says McFadden. Disclosure: NBCUniversal, parent of CNBC, is a minority investor in Kensho.

Performers participate at the 2016 Cathay Pacific International Chinese New Year Night Parade on February 8, 2016 in Hong Kong.

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The Year of the Monkey is upon us, with Chinese New Year celebrations kicking off on Monday.

It is typically a lucrative time for retailers and Chinese companies as citizens typically spend more during this one week holiday.

Steve Orlins, President of the National Committee on US-China Relations, who just returned from a trip to China, senses demand will likely be strong. "Just look at the consumption numbers – the Chinese consumer is spending," said Orlins.

While the data out of China as of late has been negative–retail sales have been somewhat of a bright spot, rising 11 percent in the month of December.

Investors who focus on China like Edwin Gutierrez, head of Emerging Market Sovereign Debt at Aberdeen Asset Management, say the lunar year is "always used as a good gauge of consumer demand, especially with home sales, retail sales, etc."

The real question facing China is whether the recent economic slowdown and the plunge in stock prices will result in consumers spending less.